London (Reuters) - Gold prices soared to a new record high on Tuesday as anticipation of U.S. monetary easing and ongoing geopolitical uncertainty continued to attract momentum-driven funds. This surge in demand has the potential to further propel the precious metal in the coming days.

Supporting the robust fundamental backdrop for gold are strong physical demand in Asia, central bank purchases, and the traditional safe-haven appeal of the precious metal. Notably, central banks have been net buyers of gold for eight consecutive months, underlining its enduring allure.

At 1540 GMT, spot gold rose by 0.8% to reach $2,130.79 per troy ounce, touching a record high of $2,141.59 earlier in the day. StoneX analyst Rhona O'Connell noted that this movement became self-fulfilling as stops were triggered, attracting momentum funds to the market.

Technical analysis suggests that gold may still have room for further upside, potentially reaching $2,180, a Fibonacci projection level. The next few days will be crucial in determining whether gold can maintain its current trajectory or experience a period of consolidation. This will be influenced by critical economic data releases and the testimony of Federal Reserve Chair Jerome Powell, according to Alexander Zumpfe, senior precious metals trader at Heraeus.

Independent analyst Ross Norman predicts that gold could reach $2,300 by the end of the year, citing impending rate cuts by the Fed and the market's inclination toward such figures. While the timing of this increase may not be immediate, Norman suggests that it could materialize within the next six months.

Meanwhile, holdings in gold-backed exchange-traded funds (ETFs) have been declining. The world's largest gold-backed ETF, SPDR Gold Trust's GLD holdings, have dropped by 7% this year, signaling a temporary decrease in demand.

The rally in gold prices has also influenced spot silver, which has broken through significant technical levels since Monday. At its highest point since December 28, silver is up 0.2% at $23.94 per ounce. Ole Hansen, Saxo Bank's head of commodity strategy, suggests that this indicates a broader trend of sustained growth, as gold is not the only metal experiencing an upward surge.

In contrast, platinum and palladium have experienced a decline, with prices dropping by 1.4% and 1.6%, respectively. However, Hansen believes that once the gold price stabilizes, platinum is likely to benefit from its recent growth. The gold-platinum ratio has reached its highest level since March 2020 when the start of the pandemic caused it to reach a record high.

Investors will closely monitor the future developments in the gold market, particularly in light of key economic data releases and Powell's testimonies, to gauge its sustainability in the coming months. If the current momentum is maintained, gold could continue its ascent and reach new heights in the near future.