Mumbai: Gold prices held close to record highs on Tuesday as investors moved towards safer assets amid rising worries about global trade tensions and weaker sentiment in financial markets.
Spot gold traded near its recent peak after briefly crossing the 4700 dollar per ounce level in early Asian trade. Silver also remained near multi year highs, supported by the same demand for safe haven assets. Traders said uncertainty over global trade relations and political signals from the United States continued to drive buying interest in precious metals.
Market sentiment has been affected by fresh concerns that trade disputes could widen, after comments from US President Donald Trump raised fears of new tariff actions involving European allies. These developments have led investors to cut exposure to riskier assets such as equities and shift money into gold and silver.
Global stock markets showed signs of strain, with Asian shares slipping and European markets opening lower. The US dollar also weakened slightly, making gold cheaper for buyers using other currencies and adding further support to prices.
In India, domestic gold prices stayed firm as global cues outweighed local demand factors. Dealers said buyers remained cautious at elevated levels, but investment demand stayed steady due to uncertainty in global markets.
Analysts said gold is likely to remain well supported in the near term as long as trade related worries persist and currency markets remain volatile. However, they also warned that sharp price swings cannot be ruled out if there is any clarity on trade policy or changes in interest rate expectations.
For now, gold continues to benefit from its role as a safe store of value at a time when investors are increasingly uneasy about the global economic outlook.