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Spot gold hit a record high and silver prices rose to a 31-year high on Monday, on concerns about rising inflation globally, and as a lingering Euro zone sovereign debt crisis continued to boost safe-haven demand in precious metals.
Spot gold hit a record of $1,488.50 an ounce, before easing to $1,485.40 by 0126 GMT. U.S. gold futures were nearly flat at $1,486.70.
It wouldn't be a surprise to see gold prices push higher in the current environment, said Darren Heathcote, head of trading at Investec Australia, adding that investors were concerned about inflation, especially when oil prices remain high.
U.S. crude futures headed lower on Monday below $109 a barrel after three days of gains, but had gained nearly 20 percent this year.