Gold soars to record level as dollar weakens

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Gold has risen to hit a record $1,498.90 an ounce, with demand fuelled by a declining dollar and concerns following S&P's outlook downgrade for the US.

Over this year, gold has increased 5.3% while the dollar has fallen 4.8% versus six other currencies including the euro and pound, Bloomberg reports. S&P yesterday cut its outlook on US sovereign debt for the first time in 70 years, reducing it from stable to negative. This means the US faces a one-third chance of a downgrade from its triple A credit rating in the next two years, calling into question whether US government debt is risk free. The eurozone sovereign debt crisis is further compounding investor concerns, prompting a flight to perceived safe-haven assets and further portfo...

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