Surprise! As the dollar heads down, gold keeps heading up.
U.S. gold futures ended higher in choppy trade on Tuesday, after hitting a record high earlySOURCE: US gold ends up, stays near record on weak dollar | Currencies | Reuters
in the session, as a weaker U.S. currency prompted investors to hedge against the depreciation of dollar-denominated assets.
* Most-active December gold futures GCZ9 settled up $7.50 at $1,065 an ounce on the COMEX division of the New York Mercantile Exchange.
* Ranged from $1,052.20 to $1,069.70 -- surpassing the previous all-time high of $1,062.70 set on Oct. 8.
* December futures initially rose toward $1,070 an ounce, and though bullion held higher it eased back as the dollar trimmed losses.
* The fact that gold was making new highs and had last week closed above the key $1,030 an ounce level should set up a rally to $1,300 an ounce over the weeks and months ahead - CitiFX, Citigroup's forex and asset markets technical research unit.