By Nicholas Larkin and Pham-Duy Nguyen – May 24, 2011
Gold rose to the highest in almost three weeks as concern that Europe’s sovereign debt crisis may worsen and a weaker dollar spurred demand for the metal as an alternative asset.
The dollar fell for the first time in three sessions against a basket of six major currencies, including the euro. The Greek government endorsed an accelerated asset-sale plan and 6 billion euros ($8.4 billion) of budget cuts to win extra aid. Fitch Ratings yesterday lowered the outlook on Belgium’s credit rating to negative, following Standard & Poor’s May 20 announcement that Italy’s debt rating was at risk of a downgrade. Bullion priced in euros climbed to a record.
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