VERACRUZ, Mexico—Hurricane Grace closed in on Mexico’s Gulf shore as a major Category 3 storm late Friday, drenching small fishing towns and beach resorts as it headed for its second landfall in the country in two days. The storm had lost power while crossing over the Yucatan Peninsula on Thursday, swirling through Mexico’s main tourist strip, but it rapidly drew in power from the relatively warm Gulf of Mexico as it moved toward the country’s mainland. The U.S. National Hurricane Center said Grace had maximum sustained winds of 120 mph (195 kph) late Friday and could gain a bit more strength before making landfall. It was centered about 75 miles (120 kilometers) southeast of Tuxpan and heading west at 10 mph (17 kph). Forecasters said Grace would quickly lose strength Saturday as it swirled inland over a mountain range carrying its heavy rains toward the heart of the country, including …