Gold hit a 28-year high on Tuesday, helped by record-high oil prices and geo-political tension. Prices later slowed gains as profit-taking set in, with the dollar’s slight gains versus the euro .

Having surged past $760 an ounce, some dealers say the market was well positioned in coming sessions to close in on the $800 mark. This has range has not been seen since 1980 when bullion hit a record $850.

Support was  coming from further dollar weakness and strength in crude oil that makes gold a hedge against oil-led inflation.

“Anything is possible. We’ve certainly broken out and we’re sort of in uncharted waters as we haven’t been here in so long,” said David Holmes, director of precious metals at Dresdner Kleinwort.

“The big theme of the market is that it’s been very difficult to predict the high and everybody is being cautious as they know the market is long, but the momentum is still upwards,” he added.

London Spot gold was trading at $760.00/760.70 per troy ounce up from $758.20/759.00 late in New York on Monday, having hit a 28-year peak at $766.60 earlier.