Europe close: Dax and gold futures hit record highs

(Sharecast News) - European markets were up on Tuesday as investors eyed an historic vote on debt reform in Germany. The soaring gold price was centre stage as continuing geopolitical instability, including a return to fighting in Gaza sent investors running for the precious metal as a safe haven.

The pan-regional Stoxx 600 was up 0.61% at 554.30. Spain's Ibex 35 outperformed with a 1.58% rise.

Germany's Dax was up by 0.98% to 23,380.70 and hit a fresh record high at the intraday level as the country's parliament voted on seismic reforms to the so-called "debt brake" in order to increase defence and infrastructure spending.

Gold touched $3,017.64 per ounce, with analysts predicting a rise to $3,100 in the short term.

There was also uncertainty ahead of a telephone call on the war in Ukraine between US President Donald Trump and Russian leader Vladimir Putin.

"In uncertain times, central banks and individuals demand gold, while inflation concerns emanating from President Trump's tariffs and trade war are also boosting the price of gold. Life above $3000 per ounce could be the norm for the gold price in 2025, it is already higher by 15% year to date, easily outpacing gains for global equities," said XTB research director Kathleen Brooks.

German equities were also boosted by a survey showing investor morale in March surged to its highest level in more than two years on the back of the government's new fiscal proposals.

The ZEW Indicator of Economic Sentiment jumped 25.6 points to 51.6 this month, the biggest one-month increase in 14 months. This was the highest level for the index since February 2022 and comfortably above the consensus forecast of 48.1.

Meanwhile, the current economic situation index for Germany remained relatively stable, rising just 0.9 points to -87.6.

In equity news, German industrial giant Thyssenkrup jumped 13% on the survey findings and ahead of the vote in Berlin which could unlock billions in defence and major project spending. Weapons maker Rheinmetall was also higher