Gold Hits New Record as Dollar Expected to Tumble

Gold hit another record in trading on Monday as the dollar is expected to tumble against other currencies, CNBC reports.

Gold hit $1,517.71 an ounce, before easing to $1,515.65, up 0.8 percent, says CNBC. U.S. gold futures also rose to an all-time high, at $1,518.6 an ounce.

Booming silver prices are also accompanying rising gold, and have actually outpaced gold numbers.

"Silver prices have climbed nearly 60 percent so far this year, after jumping more than 80 percent in 2010, outpacing gold's 7 percent rise and the 10-percent gain in the 19-commodity Reuters-Jefferies CRB index," reports CNBC.

The precious metals news comes as dismal reports surface for the dollar. While the dollar did rally slightly on Monday, the outlook still remains bleak.

"[T]he combination of upbeat global growth, signs of weaker U.S. growth and the spectre of dovish Fed policy is expected to support fund flows to higher-yielding currencies such as the euro and the Australian dollar from the U.S. currency, traders said," according to CNBC.

It continues:

The dollar has been falling due to perceptions that the United States is set to maintain an easy monetary policy even as most other major global economies, with the exception of disaster-stricken Japan, look to tighter monetary policy to rein in inflation.

Some analysts say worries about rising U.S. debt and political bickering in Washington over how to tackle the U.S. budget deficit are also undermining the dollar, making it easier for speculators to sell the currency, although there is no evidence that foreign investors are dumping their U.S. assets.

Last week, Jeff Cox said the situation is here to stay:

Weakness in the US dollar, which is causing everything to go up—including gas prices, food and stocks—is unlikely to go away soon as a selling frenzy hits the currency market.

The greenback is approaching pre-financial crisis lows and threatening to smash through its all-time low when measured against the world's predominant national currencies.

"Panic dollar selling is setting in," trader Dennis Gartman, a hedge fund manager and author of "The Gartman Letter," wrote in his daily commentary recently. "This may carry farther than any of us dream of or, worse, have nightmares of."