David Goldman, CNNMoney.com staff writer

The Treasury Department has 261.5 million ounces of gold in its reserves, representing about a third of the gold stockpiles held by governments around the world. With gold selling at about $1,100 an ounce, that means Uncle Sam is sitting on $288 billion worth of the shiny stuff.

Treasury's gold sits in vaults across the country. It holds about 25,000 bars in a vault five floors down, 80 feet below street level, in the New York Federal Reserve in Manhattan. The majority of the nation's gold reserves still reside in Ft. Knox in Kentucky...

Worries about the fast-falling dollar are sending gold prices to record highs.

Gold rose to $1,111.70 an ounce Monday as the dollar sank to a 15-month low against other major currencies in New York trading. The precious metal and the U.S. currency have had an inverse relationship since March...

Washington, Nov 5 (IANS) India’s purchase of 200 tonnes of gold for $6.7 billion from the International Monetary Fund (IMF) “shows central banks are getting on board with the idea that the bull market in gold still has legs,” according to Forbes magazine.

“India’s purchase provides positive reinforcement for gold investors that the bull market in gold is intact,” the leading US business magazine said, citing David Rosenberg, chief economist at Canadian wealth management firm Gluskin Sheff.

Richard Ross, head of global technical strategy at New York brokerage Auerbach Grayson, agrees. “India’s move, which occurs at a time when gold prices are at record levels, speaks very loudly to the bullish undercurrent of demand.”...