Gold Prices Surge on U.N. Criticism of the U.S. Dollar

Gold prices surged past $1,000 an ounce today as concerns about the U.S. dollar were brought to the forefront. A United Nations panel criticized the U.S. dollar as the global reserve currency, and that sent gold prices over the $1,000 mark.

Gold has been very strong as a safe haven investment during this recent time of recession. However, unlike other safe haven investments, the popularity of gold hasn't fallen off with signs of economic revival. This is because gold is more than just a safe haven. It is also a hedge against inflation, moving inversely to the U.S. dollar's performance against the euro in forex trading.

It is possible that gold cements itself above $1,000 an ounce. In such a case, it is possible that more people will want to buy, sending gold even higher. However, if gold prices fail to hold above $1,000 an ounce, there could be a very big drop as prices tumble -- even to below $800 an ounce.