Gold surges to record on dollar's decline

NEW YORK, Oct. 7 (UPI) -- Gold surged to a record $1,045 per ounce on the New York Mercantile Exchange, prompted by a weak U.S. dollar and a run on the commodity as an inflation hedge.

The dollar, on a six-month slide, fell to near lows for the year against the euro and the yen Tuesday, The Washington Post reported.

The weak dollar "is headed for also-ran status and will continue to lose its value against many other currencies and assets," equity strategist Peter Boockvar at Miller Tabak told the Post.

"The rest of the world wants the U.S. dollar to lose influence, but no one wants it to be abrupt," he said.

Cornell University economics professor Eswar Prasad said it would be "highly unlikely" the dollar would be replaced as the world's reserve currency soon.

"Over the next decade, though, we would expect to see other currencies play a much more significant role," he said.

Gold settled slightly lower Wednesday, trading at $1,043.80 in midday trading.