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Gold, palladium hit highest since early May

Published 06/06/2011, 10:17 AM
Updated 06/06/2011, 10:20 AM
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LONDON, June 6 (Reuters) - Gold built on earlier gains to touch its highest level since early May, driven by fresh concern about the outlook for U.S. growth, which weighed on riskier assets such as equities.

The spot gold price rose by as much as 0.7 percent on the day to a high of $1,552.60 an ounce, its strongest since May 4. It was trading at $1,551.50 an ounce at 1411 GMT.

Palladium rose by as much as 1.7 percent to a session peak of $793.50 an ounce, its highest in just over a month.

The dollar index <.DXY> pared earlier losses but still held around one-month lows, while U.S. blue-chip stocks came under pressure as investors grew increasingly concerned about the economic outlook. [.N] [FRX/]

(Reporting by Amanda Cooper, editing by Jane Baird)

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