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Gold sets record high above $1,040 per ounce

• Reuters
 Gold surged to a record high above $1,040 per ounce on Tuesday, fueled by a steadily falling U.S. currency, which prompted investors to buy gold as a hedge against dollar-denominated portfolios.

Both spot gold prices and U.S. gold futures have benefited from a convergence of factors, including the dollar's decline, technical buying momentum and worries about potential inflation as central banks struggle to emerge from unprecedented fiscal stimulus measures.

"In an environment where interest rates are virtually zero, the incremental cost of moving into gold is nil. It stands to reason for investors that gold is more desirable," said Jack Ablin, chief investment officer at Harris private bank in Chicago.

Spot gold hit a historic $1,043.45 per ounce, and was last up 2.2 percent at $1,039.40 at 12:43 p.m. EDT, compared with $1,016.65 quoted late in New York on Monday.

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