Gold futures rose Tuesday to a new record high near $1,070 an ounce, as the U.S. dollar hit a fresh 14-month low and as crude climbed to a seven-week high, increasing gold's appeal as a hedge against a weaker currency and possible inflation. Meanwhile, platinum and palladium rose to the highest level in more than one year. Gold for October delivery, the thinly traded front-month contract, rose $11.70, or 1.1%, to $1,068.40 an ounce on the Comex division of the New York Mercantile Exchange, the highest level for a front-month contract and topping its earlier record of $1,060.40 hit on Oct. 8. The most actively traded December contract gained $5.20, or 0.5%, to $1,062.60. In other commodities, crude oil rose to $74.50 a barrel, the highest level since Aug. 25, when oil hit $75 a barrel for the first time in 10 months. The Organization of Petroleum Exporting Countries Tuesday revised higher its global oil demand view for 2009 and 2010. In currencies trading, the dollar slid against most of its major rivals, with the euro rising as high as $1.4875, the strongest level since August, 2008. The dollar index (DXY 75.85, -0.28, -0.36%) fell to 75.738, also the weakest in 14 months. "The weak dollar and strong commodity rally is continuing ahead of a deluge of U.S. economic data," said Brian Kelly, chief executive of Kanundrum Research, a commodities and macroeconomic research firm. "For now it is full steam ahead despite the icebergs; by the end of the week we shall know if the dollar follows the path of the Titanic." Investors also await a series of economic reports to be released later this week. The Federal Reserve will release the minutes of its last meeting on Wednesday, and the new consumer price index, due on Thursday, will give investors a better sense of the level of inflation. Holdings in SPDR Gold Trust (GLD 103.87, +0.31, +0.30%) , the biggest exchange-traded fund backed by physical gold, stood at 1,109.31 metric tons Monday, unchanged for a fourth session. "Chart momentum indicators continue to point higher, and given inflation fears and historically low interest rates investors will continue to seek out stronger yielding assets," said James Moore, an analyst at TheBullionDesk.com. However, "gold will remain vulnerable in the short term to dollar-related selling due to the scale of longs." On the Comex, net long, or buying, positions held by speculators rose to a record high of 239,668 contracts in the week ended Oct. 6, according to the latest weekly report by the Commodity Futures Trading Commission. That's up 6.7% from a month ago and nearly doubled the level at the end of last year, when gold was trading below $900 an ounce. See related story. In other metals trading, October platinum gained $17.80, or 1.3%, to $1,357.20 an ounce, after rising to $1,357.80, the highest level since September, 2008. December palladium rose $4.70, or 1.4%, to $334.50 an ounce, after hitting $337.90, the strongest level since August, 2008. December silver futures rose 16 cents, or 0.9%, to $17.98 an ounce. Bucking the trend, December copper lost 1.15 cents, or 0.4%, to $2.8455 a pound

Source