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Gold Borrowing Costs Advance to Highest in 4 1/2 Years in London

The cost of borrowing gold climbed to a 4 1/2-year high in London at a time when record sales by investors mean prices are poised for the biggest annual decline in more than three decades.

The one-month lease rate rose to 0.2988 percent, the highest since Dec. 18, 2008, from 0.2578 percent yesterday, according to data compiled by Bloomberg. The rate is derived by subtracting the gold forward offered rate, which turned negative yesterday for the first time since November 2008, from the London Interbank Offered Rate.