Gold hits record high amid weak dollar Special

On Tuesday, the price of gold reached a record high when it hit $1,042 US ($1,103CAD) and many goldbugs believe gold will continue to increase in value as the United States Dollar depreciates.

December gold futures hit an all-time high with $1,042USD per ounce amid the weak US Dollar and speculations rolling around that oil states will start trading in a variety of currencies and even gold. With the US Dollar index declining to $76.67, many bullion experts believe gold will reach astronomical highs, reports Reuters. The US Dollar declined on Tuesday after reports that many Gulf nations will not be trading oil in dollars anymore, according to iAfrica. The report published shows that currencies like the Chinese Yuan, Japanese Yen and or the Euro would be the currencies of choice. Peter Schiff, President of Euro Pacific Capital and Connecticut Republican Senate candidate, believes gold will reach $5,000 per ounce and even beyond mostly because of the United States government’s monetary policies and expanding the money supply. It was reported on Digital Journal last month that the Chinese government released television advertisements urging their citizens to buy precious metals such as gold and silver. Currently, silver bullion is trading at $17.28USD ($18.30CAD). Peter Spina, Chief Investment Analyst at GoldSeek.com, said, “News on gold's expected future role in oil transactions between these trading partners has sent the price past $1020." Zaman Monirusz, CEO of The Bullion Mart in Toronto, one of the few bullion dealers in the Greater Toronto Area, told Digital Journal on Tuesday that he thinks the next gold target will be $1,090 USD. "Gold is looking very bullish at this moment because all investors have been turning to gold. Gold is looking to its next target, which will be $1090." Also adding that the possible move by Gulf nations to start trading in gold is good because of the next target but "there are many different aspects of their decision." For example, if the US dollar is going to be dumped as a trading currency, then the price of gold will skyrocket, he adds. Monirusz further added that silver is far under-priced but feels silver bullion will "reach higher than $19.25 before the year is finished."