By Alan Fein

(AXcess News) New York - December gold futures soared to a new record high of $1111.70 Monday after the dollar fell to a 15-month low. Gold's increase came on top of a 5% gain last week on speculation that banks worldwide would begin buying more gold bullion as a hedge against the uncertainty of the dollar.

The greenback crumbled Monday after finance leaders in the G20 group of countries failed to come away with any definitive plans to better manage cash flows globally.

The U.S. Dollar Index (NYBOT: DX-Y.NYB) slid to an intraday low of 74.93 before recovering to 75.048 for a loss of 0.614 or 0.81% Monday which was all precious metals traders needed to see.

Everywhere you looked Monday trading numbers were in the green with spot gold in New York up 5.90 at $1103.80.

Standard Bank precious metals analyst Walter de Wet said this morning that short covering was more the reason for gold prices going higher after gold edged up above $1100 in Asia.  De Wet remained bullish on gold prices continuing to climb even higher.

"Gold is trading at new highs- and we expect more upside," said de Wet. "We believe $1,150 for the gold price is a real possibility."

The Standard Bank analyst said, "Risk appetite is back this morning which is benefiting gold." De Wet pointed to finance leaders of the G-20 all agreeing that further financial stimulus was needed to buoy the global economy.

Gold stocks were also shining Monday as markets in both Canada and the US soared.  The gold composite closed up 4% at 1143.6.

Of the major gold stocks in the composite, Keegan Resources (AMEX: KGN) was the market leader, closing up 11.05%, or 63 cents, at $6.33, though KGN shares reached a new 52-week high earlier in the day of $6.93.

Minco Gold (AMEX: MGH) closed up 9.71%, or 10 cents, at $1.13.  Gold Corp. (NYSE: GG) rose 6.72%, or 2.77, to close at $44.00.

On the junior mining scene, Gold Resource Corp. (OTCBB: GORO) finished up 6.67%, or 60 cents, at $9.60.  The Company recently announced the start-up of a crushing plant at its El Aguila Project in the southern state of Oaxaca, Mexico. The Aguila mill is in the final phase of construction and is targeting gold production in 2009 subject to equipment delivery and construction schedules.

Teryl Resources Corp. (OTCB: TRYLF) closed up 1.5%, or 0.003, at $0.203.  The Alaska gold exploration and development company holds a 20% stake in a Kinross Gold (NYSE: KGS) joint venture claim a few miles from KGS' Fort Knox gold mine.  Investors had pushed Teryl shares higher last week as speculation of an increase in the 2010 mine development budget by Kinross on Teryl's claims.  So far, $9.5 million has been spent on the property.