Weak Dollar Pushes Gold Above $1,100 An Ounce

SARA LEPRO

NEW YORK (AP) — Gold prices climbed to another new high Monday as the U.S. dollar sank to a 15-month low.

Gold for December delivery soared as high as $1,111.70 on the New York Mercantile Exchange before settling at $1,101.40 an ounce, up $5.70, or 0.5 percent.

The gains came as the ICE Futures US dollar index, which measures the dollar against other currencies, dropped more than 1 percent to its lowest level since August 2008.

The dollar weakened after finance ministers from the Group of 20 countries pledged over the weekend to maintain their stimulus efforts and keep interest rates low to further a global economic recovery. The G-20 leaders did not address how they might support currencies that have fallen in response to low rates.

U.S. rates are near zero, which has contributed to the dollar's decline. Gold, meanwhile, is seen as a hedge against the weak dollar and inflation, which investors fear could become a problem down the road if the greenback keeps falling.

"Short-term traders are looking at gold as an inverse play on the dollar," said Nicholas Brooks, head of research and investment strategy at ETF Securities in London.