Gold hit alltime high of 2,266.59ounce on Tuesday
U.S. dollar is near its highest in almost five months
US manufacturing sector grows for first time in 112 years

LONDON, April 2 Reuters Gold prices rose to a fresh record high on Tuesday as demand from momentumfollowing funds offset a strong U.S. dollar and the possibility of higherforlonger U.S. rates.

Spot gold rose 0.5 to 2,260.7 per ounce by 0946 GMT, after hitting an alltime high of 2,266.59. The bullion has been hitting fresh record highs for three sessions in a row.

An underlying bid from retail and central banks is being joined by momentumfollowing speculators who have extended their already elevated longs following the break above 2,200, said Ole Hansen at Saxo Bank.

In addition, there is no doubt that geopolitical tensions have added an additional layer of support.

The bullion rose by 9.3 in March, which was its biggest monthly growth since July 2020.

It kept rising on Tuesday despite a strong U.S. dollar after Monday39;s data showed U.S. manufacturing grew for the first time in 112 years in March. Traders pared bets of a June interest rate cut to 62 after the data, according to the CME Group39;s FedWatch Tool.

What makes the gold rally so unusual is that is occurring despite significant traditional headwinds with the U.S. dollar rising, treasury yields rising, the likelihood of higher for longer U.S. rates increasing, said independent analyst Ross Norman.

Furthermore, we are moving into a slack…