Investors Bump Gold Price To 1045 An Ounce

10.07.09 | FL News Team

The price of gold spiked Tuesday, hitting one-thousand-45-dollars an ounce before settling back to close just under one-thousand-40-dollars,. The previous record price had been one-thousand-20-dollars set on September 16th. CNNMoney.com says the new record was reached due to talk about the U.S. dollar being sidelined as the currency for oil trading.

A report in a British newspaper, "The Independent," claimed Middle Eastern oil-exporting nations and some large energy consumers including China, Russia and Japan are secretly working on a plan to stop buying and selling crude oil in U.S. dollars. The alternative, according to the report, is to use multiple currencies including the Japanese yen, Chinese yuan, the euro and gold. Adding gold forced prices up nearly 22-dollars. Oil prices also rose 47 cents, ending the day at 70-88 a barrel.

Most financial experts are discounting talk about dropping the dollar for trading oil, noting the idea is brought up occasionally but never seems to go anywhere.