By Rita Ruvinski
The precious metal gained for a 3rd day in Tuesday trading as a weaker U.S dollar fueled demand for the metal as an alternative investment. Gold rose closer to last week’s record highs above $1,070 an ounce as the USD fell to a 14-month low against a basket of six major currencies, helping bullion maintain its appeal as an alternative to currencies.
While the Dollar’s weakness made it almost certain Gold would hit new records in coming days, some analysts said a lack of momentum in commodity’s rise despite the Dollar’s renewed decline on Tuesday suggests there is slight wariness about the risk of U.S. interest rates rising sooner than many think. Near-term resistance is seen around $1,068, a level it took time to break through when it hit a record high of $1.070.40 on October 14. And a support level is seen at $1,055.43, the 10-day moving average.
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