Spot silver hit a new 30-year high of $28.16, and palladium extended gains to a new nine-year peak of $714.25. Spot gold rose to an all-time high of $1,414.60 an ounce, before easing to $1,413.50 by 0706 GMT.
"Liquidity is being thrown into the market place, the dollar is being debased as a way the U.S. government can get out of debt obligations, while Asian central banks keep buying dollars and keep their currencies cheap," said a Singapore-based trader.
Baskets of currencies around the world includes US currencies but because the currencies are unstable, some of the countries are contemplating whether to de-peg their currency from the US currency.
We will see in due time whether more countries will move away from the US and stick to the Asian currencies instead.
Gold has always been seen as the alternative choice to US dollars whenever the latter is unstable and judging from the gold prices now, it can be surmised that the US dollars will probably not come to a stable point any time soon.
Credits -australianminesatlas
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