But the metal remains well supported above $1,130 an ounce, analysts said, with expectations for further dollar weakness and firm investment interest in bullion as a hedge against inflation expected to underpin this year’s 29 percent gains.

Spot gold was bid at $1,132.15 an ounce at 1019 GMT, against $1,139.05 late in New York on Monday. It touched a record high $1,143.25 an ounce that session.

U.S. gold futures for December delivery on the COMEX division of the New York Mercantile Exchange fell $6,70 to $1,132.50 an ounce.

“After yesterday’s push we might see some consolidation, but I think there is probably still a bit more upside left for gold,” said Standard Bank analyst Walter de Wet.

“We continue to see some physical buying interest even at these levels, as people come in and buy on the dips,” he added. “The investment story remains intact as long as interest rates are low.”

As gold is a non-interest bearing asset, the opportunity cost of holding it is reduced when rates are depressed. Opportunity costs represent possible profit shortfalls incurred by passing up on investments with potentially higher returns.

Gold’s chief support has been ongoing weakness in the U.S. dollar, which slipped against a basket of six other currencies on Monday after senior Federal Reserve officials said U.S. interest rates will remain low.

However, the currency bounced back early on Tuesday, with the dollar index firming 0.33 percent. This has curbed gold’s appeal as an alternative asset, and also makes all dollar-priced commodities slightly more expensive for other currency holders.

Oil edged lower after posting hefty gains on Monday, with traders citing the firmer dollar as a curb on the market, while base metals also gave up the last session’s gains.

Consumer demand

Gold dealers in India, the world’s biggest bullion market last year, reported higher scrap sales after gold hit a fresh record high on Tuesday, but domestic demand abated after a slight pick-up late in the previous session.

Consumer demand for gold has been weak this year as prices rise, but more buying has been taking place among central banks, who in recent years have chiefly been sellers of gold.

The International Monetary Fund said on Tuesday it sold two tonnes of gold to the central bank of Mauritius at prevailing market prices on Nov. 11.

Reports of the acquisition by India of 200 tonnes of IMF gold early in November were a key factor driving prices to record highs above $1,100 an ounce.

“It is clear that central banks are seeking ways to increase their gold exposure,” said Fairfax analyst Marc Elliott.

Among other precious metals, spot silver was bid at $18.12 an ounce against $18.36. The metal touched a peak of $18.43 on Monday, its firmest since July 2008.

Platinum matched the last sesssion’s 14-month high of $1,451.50 an ounce was later at $1,439 versus $1,441. Palladium hit a 15-month high of $375.70 before easing back to $368.25 an ounce versus $373.

Fellow autocatalyst material rhodium reached a 13-month high of $2,425.

“The changing fortunes of the motor industry, allied to some investor activity, have been steadily lifting the price of (rhodium),” said Societe Generale in a note.

“The expectation is that it has considerably further upside potential,” the note added.