Gold prices hit a record high for an eighth consecutive session on Tuesday with support from momentum-following funds and inflated geopolitical tensions.

Spot gold was up 1.1 per cent at $2,363.42 per ounce by 0936 GMT after hitting a record high of $2,365.09.

“Strong underlying momentum with the buy-on-dip still the prevailing strategy among traders,” said Ole Hansen, head of commodity strategy at Saxo Bank.

“Geopolitical risks related to Russia/Ukraine and the Middle East are still playing a supporting role, and the focus is changing from the negative impact of lower rate cut expectations towards higher and sticky inflation,” he added.

The broader market is waiting for the US Federal Reserve’s policy meeting minutes and US inflation data due on Wednesday for fresh signals on future US rate path.

Elevated interest rates usually constrain the appeal of holding non-yielding gold, but the precious metal has been ignoring these factors so far this month.

From the technical point of view, the April rally moved spot gold prices deep into the overbought territory, as indicated by the relative strength index.

Spot silver rose 1.0 per cent to $28.11 per ounce after hitting $28.15, its highest level since June 2021.

“Silver is trying - for a second day - to gain a foothold above $28. If successful, gold may enjoy some additional tailwind,” Hansen added.