Gold rallied to a 16 month high on Tuesday, fueled by reduced U.S. interest rates, higher oil prices, and a weaker dollar.

Gold is approaching the 26 year high set in May 2006 at $730 an ounce. A breakout above this level would be a very bullish signal and would indicate that gold prices are poised to head significantly higher.

The record price was set in January 1980 when gold traded at $850 an ounce.