Gold (XAU) Silver (XAG) Daily forecast: Gold Hits Record $ 3,017 – Has a mega bull run began?

FED installment cuts and dollar women support Golds increase

Despite a minor recovery, the US dollar index (DXY) remains under pressure of 103.50 according to weaker economic data. The retail turnover in February only rose by 0.2%and lacked the expected 0.7%and signaled softer consumer expenses.

The Michigan University of Michigan has decreased to 57.9, the lowest since November 2022, which has been concerned about economic slowdown.

The FOMC decision on Wednesday is the main focus of the market. While an immediate reduction in installments is unlikely, retailers later expect several reductions in 2025, which would support the upward dynamics of gold by reducing the opportunities for keeping non-Yield assets.

The geopolitical uncertainty drives the demand for the safe haven

Global trade and geopolitical risks continue to shape Golds trajectory. The shifts of US trade policy, especially the 25% tariff for Australian aluminum and steel, have contributed to economic concerns. In the meantime, the continuing negotiations in Russia-Ukraine and the broader political uncertainty contribute to the resistance of gold as a value memory.

Despite the bullish trend of gold, China's economic recovery has further profits. With 4.0% compared to the previous year's growth of retail sales and increasing industrial production, improved economic conditions can limit the immediate upward trends.

Investors are now waiting for the US economic data, including building permits, the start of the apartment and industrial production in order to measure the short-term market direction. However, the political attitude of the Fed remains the key factor that influences the gold movement in the coming weeks.