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Gold Surges to Record as Treasuries Fall; Stocks, Dollar Gain

Gold climbed to a record, most U.S. stocks rose and the dollar rallied to the strongest level against the euro in a month. Treasuries fell before the Federal Reserve issues its policy statement tomorrow.

The U.S. currency appreciated on speculation Fed officials are discussing the outlook for record-low borrowing costs at their two-day meeting. U.S. stocks pared earlier losses after Warren Buffett’s Berkshire Hathaway Inc. agreed to buy railroad Burlington Northern Santa Fe Corp. for $26 billion. Crude oil rebounded from a two-week low and neared $80 a barrel.

Gold futures for December rallied $34.50, or 3.3 percent, to a record $1,088.50 in after-hours trading as the Reserve Bank of India bought 200 metric tons of the metal for $6.7 billion from the International Monetary Fund. Central banks, the biggest holders of gold, may diversify out of the dollar and buy bullion as surging U.S. debt and low interest rates weaken the currency.

About five stocks gained for every two that fell on the New York Stock Exchange. The Standard & Poor’s 500 Index added 0.2 percent to 1,045.41 at 4:11 p.m. in New York after falling as much as 0.9 percent. The Dow Jones Industrial Average decreased 17.53 points, or 0.2 percent, to 9,771.91. Stocks in Europe slid after UBS AG posted a wider-than-estimated loss.


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