Gold prices broke records again on Tuesday, driven by a wave of risk aversion dominating international markets. The climate of uncertainty intensified after the controversial ruling by the Colorado Supreme Court, which excluded Donald Trump from the Republican primaries in that state — a decision that will be reviewed by the United States Supreme Court later this week.
The precious metal, the traditional refuge of investors in times of geopolitical or economic turbulence, rose 0.6% to reach 2,050.07 dollars an ounce, its highest value since 27 December. The recent climb in prices reflects a global flight to assets regarded as safe, in a context in which the American political future looks increasingly volatile.
The dollar index, which measures the value of the US currency against a basket of other major currencies, remained practically stable, standing at 103.3 points. This relative stability did not, however, prevent gold from strengthening, which has also benefited from the widespread expectation that the Federal Reserve (Fed) may begin cutting interest rates as early as March.
On the other side of the Atlantic, European markets opened in the red. The Stoxx 600 index fell 0.8%, while Germany's DAX dropped 0.9% and France's CAC 40 lost 0.8%. Political instability in the United States, linked to a possible reshaping of the presidential race, is contaminating investor sentiment globally.
Oil, for its part, also registered a slight gain. North Sea Brent, the benchmark for Europe, rose 0.2% to 80.14 dollars a barrel. This modest rise reflects continuing concerns over global supply, above all in the Middle East, a region where military tensions persist.
