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Gold hit a record high above $1,622 an ounce on Monday, while the dollar steadied and Asian stocks slipped as investors piled into bullion over fears of a possible US debt default as the debt ceiling talks in Washington stalled. Spot gold, which has risen nearly 14 percent so far this year, climbed more than 1 percent to a record of $1,622.49 an ounce, before easing to $1,615.66 by 0621 GMT.
US gold also hit a record at $1,624.30. It was last quoted at $1,616.50. Clocks are ticking towards the August 2 deadline for US debt talks, while President Barack Obama and congressional leaders struggled late on Sunday to break a partisan impasse. "Markets are focusing on whether the negotiations will be resolved," said Natalie Robertson, a commodities analyst at ANZ. "At this time, we'll see continued volatility and increased safe-haven buying in gold." Spot silver gained 1.5 percent to $40.60, building on a 1.9 percent-rise last week. US silver rose 1.3 percent to $40.66.
Platinum group metals edged down, tracking weakness in equities. But sentiment was supported by looming strikes in South Africa, the world's biggest producer of such metals. Spot platinum inched down 0.3 percent to $1,786.99, after rising 2.6 percent last week. Spot palladium lost 0.2 percent at $802.75, holding onto a 4.3-percent weekly gain.

Copyright Reuters, 2011

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