The price of spot gold increased as the US Dollar fell against both the EUR and JPY today. During the afternoon trading session in Japan, the USD was trading at a daily high of 1.4992 against the euro while falling to a low against the yen at 89.40. During this time spot gold prices touched a new record high of $1132.07. Last week's trading had the commodity climbing over 2%. Pushing the commodity higher right now is the weak US Dollar, fears of higher future inflation, and the large purchases of gold bullion by central banks, especially India's. The EUR/USD is up 1.8% this month as risk aversion is dissipating in the financial markets and traders are seen as being bullish on an economic recovery. However, due to the continued dovish monetary policy by the leading central banks in the world, fears remain of higher inflation. The lack of interest rate tightening and the scaling back of programs designed to inject liquidity into the financial markets are making gold a more attractive investment and pushing prices to record highs each successive week.

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