"The dollar is losing its relevance especially with the emergence of Asia economies, so a more neutral benchmark may be required. Gold, amid all the recent uncertainty, is proving its worth," said ANZ's senior commodity analyst Mark Pervan.
World Bank chief surprises with gold proposal
LONDON/WASHINGTON (Reuters) - The world's largest economies should consider gold as an indicator to help set foreign exchange rates, the head of the World Bank said on Monday in a proposal that threw open the acrimonious currency debate just before a summit of G20 nations.
Writing in the Financial Times, World Bank President Robert Zoellick called for a new monetary system to replace the floating rates adopted in 1971 known as Bretton Woods II.
...The price of gold powered to a record $1,410 an ounce on Monday during safe-haven buying after the U.S. Federal Reserve last week resumed buying Treasury bonds to inflate its money supply. Spot gold was last trading at around $1,406 an ounce.
Gold has risen nearly 6 percent since just before the Fed detailed plans last Wednesday to buy $600 billion in Treasuries to revive the economy, also stoking inflation fears.
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