Gold futures rose for a second day on Tuesday, making modest gains as a hedge against inflation after crude oil hit a new record high. Silver also rose.

Gold for June delivery ended up $3.30, or 0.4 percent, to $932 an ounce on the Comex division on the New York Mercantile Exchange. Earlier it rose to an intraday high of $939.80.

On March 17, gold reached $1,033.90 an ounce, the highest ever, as oil set what was then a record high.

Crude-oil futures hit a record high of $113.93 a barrel on Tuesday.

The dollar recovered overnight losses against other major counterparts. The dollar index, which tracks the performance of the greenback against a basket of currencies, rose 0.3 percent to 71.93

Given the ongoing recessionary/inflationary fears and liquidity issues dogging the credit market, we remain bullish in the mid to longer-term and expect gold to reclaim $1,000 an ounce later in the year, said James Moore, an analyst at TheBullionDesk.com, in a research note.

In economic news, the Labor Department reported Tuesday that U.S. producer prices rose 1.1 percent in March, surpassing analysts' expectations. Core producer prices, excluding volatile food and energy, rose 0.2 percent, in line with analysts' expectations.

In February, the PPI rose 0.3 percent, while the core gained 0.5 percent. Analysts have been concerned by gains in the core PPI and inflation risks.

Also on the Nymex, May silver futures rose 6 cents at $17.85 an ounce, while July platinum gained $4.50 to $1,986 an ounce.

June palladium dropped $9.05 to $453.75 an ounce and May copper futures edged 3.75 cents lower to $3.859 a pound.

Crude oil Inflation Gold Silver