Gold to shine as dollar loses appeal

SINGAPORE: Gold will climb to $1,500 an ounce and silver will top $25 this year as the dollar loses its haven status, according to Jeffrey Nichols, managing director of American Precious Metals Advisors.

"Fear of sovereign debt defaults by one or another European country could benefit the dollar and temporarily hurt gold," New York-based Nichols said. "But gold is the ultimate safe haven and the dollar, without the support of sound monetary and fiscal policies, is a depreciating asset."

Gold surged to a record $1,226.56 an ounce on Dec 3 and has slipped 9.5 percent since then as the Dollar Index, a six-currency gauge of the greenback's strength, rallied amid concern that sovereign debt problems in the 16-nation eurozone would spread.