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Gold hit a fresh all-time high of $1,509 an ounce, extending its record-breaking rally to a sixth session, as the weaker dollar prodded investors toward assets less reliant on the U.S. economy.

The dollar index .DXY was steady at 73.99 against a basket of major currencies after slipping to its lowest since mid-2008 on Thursday, weighed down by expectations that the Federal Reserve will keep interest rates at record lows for some time to come and by bitter divisions in Washington over how to slash the gaping budget deficit.

Analysts said it could extend recent losses next week, with all eyes now on its record low of 70.698 struck in March 2008.

"The biggest reason behind the fall is waning investor confidence in U.S. assets. The market is waking up to the fact that fiscal problems are not limited to euro periphery countries," said Daisuke Uno, chief strategist at Sumitomo Mitsui Banking Corp in Japan. ID:nL23389078]

Trade was expected to remain thin into early next week with most markets around the world closed from Friday through Easter Monday.

Japan's Nikkei-225 share average .N225 ended down 0.04 percent but pared initial losses after news that Renesas Electronics 6723.T., a major chip supplier to the auto industry, would resume operations at an earthquake-hit factory earlier than expected

Tokyo stocks had slipped in early trade as dollar weakness boosted the value of the yen.

In Seoul, one of the other few Asian markets open on Friday, the Korea composite Stock Price Index .KS11 edged down 0.03 percent, while Shanghai .SSEC fell 0.7 percent, shrugging off gains in U.S. markets overnight.

Wall Street posted its first positive week in three as healthy earnings news boosted the Dow Jones industrial average by 0.42 percent, though gains were offset by the fact that 180 S&P names were due to report financial results next week. .N

DOLLAR WOES

Adding to pressure on the dollar, data overnight showed the U.S. economy was struggling to regain momentum.

Factory activity in U.S. Middle Atlantic states slowed sharply in April, new jobless claims fell less than expected and other reports showed steep declines in home prices in February.

Data next week is expected to show U.S. growth slowed significantly in the first quarter.

China's yuan hit another record high, trading at 6.5096 to the dollar in early afternoon as the central bank fixed its mid-point at an all-time high.

Like many other Asian governments this year, Beijing appears to have decided to allow more gains in its currency to help tame imported inflation.

But analysts discounted any notion that the People's Bank of China would oversee a one-off currency revaluation as it did in July 2005, a move that could hurt exporters and place huge pressure on the government.

Oil prices also remained high, with the weaker dollar attracting more buying. U.S. Crude oil futures ended higher for the third straight day on Thursday and Brent crude stood at just over $124 a barrel.

This week's revised bid "is substantially the same as what was previously rejected," NYSE Euronext Chairman Jan-Michiel Hessels said in a statement.

In similar language to the board's first rejection on April 10, Hessels said the new offer "does not provide compelling value, has unacceptable execution risk and is therefore not in the best interests of NYSE Euronext shareholders."

Though the decision was expected, it could further pave the way for a bidding war, and it reinforces the need for Nasdaq and ICE to convince NYSE shareholders that their proposal can survive a tough U.S. antitrust review.

Hours after the board's decision, Nasdaq and ICE issued a statement repeating that their bid was superior and that they would continue direct discussions with shareholders.

"Nasdaq OMX and ICE have directly met each of the specific concerns initially raised by NYSE Euronext's board and their response is now vague generalities unsupported by the actual facts," the exchanges said.

The NYSE board reaffirmed its support for a friendly $9.8 billion takeover offer from Deutsche Boerse. Though it is 14 percent lower than the unsolicited $11.2 billion offer from Nasdaq and ICE, NYSE Euronext argues it fits with the company's strategy to grow internationally with more diverse revenues.

Nasdaq and ICE bid for the New York Stock Exchange parent company on April 1. On Tuesday, they promised to pay NYSE Euronext $350 million if regulators blocked a merger -- a pledge meant to ease the board's antitrust worries and draw them to the negotiating table.

The pair -- which were left out of a wave of global merger plans among exchanges earlier this year -- said they secured committed financing for the deal from banks, and said antitrust regulators would start a review soon.

STANDING FIRM

The battle for the Big Board has grown increasingly bitter, and its outcome could revamp ownership of many of the largest market operators in Europe and the United States.

Both offers face tough regulatory reviews on both sides of the Atlantic, complicating things for investors betting on which bid, if any, will prevail.

While NYSE Chief Executive Duncan Niederauer said on Monday competitors were trying to disrupt, distract and discredit his company, Nasdaq CEO Robert Greifeld said on Wednesday he will consider "all options available" as he and ICE pursue NYSE to the "endgame."

"They're both pursuing their strategies, and right now you're seeing the NYSE board stand firm," said Richard Repetto, analyst at Sandler O'Neill. "But if you take Greifeld at his word, and there's no reason not to, he's in it for the long run."

Greifeld -- like Niederauer known as an aggressive deal-maker -- said in a statement on Thursday that he and ICE would not be "deterred by the board's attempts to protect an inferior transaction."

In a separate statement, Deutsche Boerse said it is moving ahead with integration planning. It called Nasdaq and ICE's proposal "lacking in business logic" and "a major step backward in the evolution of the global exchange industry."

NYSE shareholders are set to meet on April 28 for their annual vote on the company's directors. "The way the vote goes will be a modest referendum on how the shareholders feel about the board's decisions," Repetto said.

The shareholders will likely vote on the Deutsche Boerse tie-up in July.

(Reporting by Jonathan Spicer. Additional reporting by Clare Baldwin and Paritosh Bansal. Editing by Robert MacMillan, Gary Hill)

Apple's blowout results and strong reports from a number of industrials kept sentiment on the bullish side, after investors were on guard for disappointments headed into this week.

Another increase in jobless claims and underwhelming results from General Electric and McDonald's kept gains in check. The S&P 500 ran into resistance close to 1,340, a level that has triggered selling plenty of times this month. Some see a failure to convincingly rise above 1,344, the recent high in the benchmark, as a bearish technical signal.

Volume was light, with about 6.45 billion shares traded on the New York Stock Exchange, the American Stock Exchange and Nasdaq, below last year's daily average of 8.47 billion.

"Objectively, the earnings season is still mixed, but since the most recent results were strong, it increases the perception that we'll have a good first half of the year," said Tommy Huie, who oversees about $34 billion as president and chief investment officer of M&I Investment Management in Milwaukee.

Apple Inc (AAPL.O) rose 2.4 percent to $350.70 a day after posting results that surged past expectations, joining F5 Networks, DuPont and other names that increased the perception of a healthy corporate America after some names' early results disappointed.

Along with GE and McDonald's, the Dow's advance was limited by Verizon Communications Inc (VZ.N). GE shares fell 2.2 percent to $19.95 while Verizon lost 2.3 percent to $36.91 and McDonald's was off 1.9 percent at $76.91.

Factory activity in the U.S. Mid-Atlantic region slowed sharply in April and the number of claims for unemployment insurance fell less than expected last week, implying the economy was struggling to regain momentum.

"That claims didn't decline as much and (factory activity) cooled down suggests that we could be more likely for a pullback," said Donald Selkin, chief market strategist at National Securities in New York. "I don't see how we can maintain these gains."

The Dow Jones industrial average .DJI was up 52.45 points, or 0.42 percent, at 12,505.99. The Standard & Poor's 500 Index .SPX was up 7.02 points, or 0.53 percent, at 1,337.38. The Nasdaq Composite Index .IXIC was up 17.65 points, or 0.63 percent, at 2,820.16.

The Dow climbed as high as 12,506.06, its highest intraday level since early June 2008.

For the week, both the blue-chip index and the S&P 500 are up 1.3 percent while the Nasdaq, lifted by strong tech results, rose 2 percent.

Other notable companies, including Travelers Cos Inc (TRV.N), Morgan Stanley (MS.N) and UnitedHealth (UNH.N), advanced following quarterly results.

Travelers gained 3.7 percent to $61.32 and was the Dow's top gainer while Morgan Stanley rose 1.7 percent to $26.48, DuPont added 1 percent to $55.91 and UnitedHealth rose 8.1 percent to $47.81.

Biogen Idec (BIIB.O) was the S&P 500's top gainer, up 15.2 percent at $99.70, after it released promising data from a clinical trial of an experimental multiple sclerosis drug.

About two stocks rose for every one that fell on the New York Stock Exchange, while on the Nasdaq, about three stocks rose for every two that fell.

(Reporting by Ryan Vlastelica; Editing by Jan Paschal)

The S&P 500 bumped up once more close to 1,340, a level that has triggered selling plenty of times this month. Some see a failure to convincingly rise above 1,344, the recent high in the benchmark, as a bearish technical signal.

But continuing with a recent swing in sentiment, Apple Inc (AAPL.O), up 2.7 percent at $351.51, posted results that smashed Wall Street's expectations. The maker of the iPad and iPhone joined Intel, United Technologies and other names that have increased the perception of a healthy corporate America.

"Companies are proving the concern over expectations was unwarranted because corporate earnings are looking very strong," said Eric Kuby, chief investment officer of North Star Investment Management Corp in Chicago.

Factory activity in the U.S. Mid-Atlantic region slowed sharply in April and the number of claims for unemployment insurance fell less than expected last week, implying the economy was struggling to regain momentum.

"Data is telling you we're experiencing a little bit of a bump, a little bit slower growth," said Anthony Chan, chief economist of J.P. Morgan Private Wealth Management in New York.

But he said there was hidden good news in the "prices paid" component of the Philadelphia Fed survey.

"The slowdown is also going to put a damper on price inflation," he said.

The Dow Jones industrial average .DJI rose 26.30 points, or 0.21 percent, to 12,479.84. The Standard & Poor's 500 .SPX added 5.44 points, or 0.41 percent, to 1,335.80. The Nasdaq Composite .IXIC gained 13.10 points, or 0.47 percent, to 2,815.61.

The Dow climbed as high as 12,496.83, its highest intraday level since early June 2008.

Travelers Cos Inc (TRV.N) gave the Dow its biggest lift after the large property insurer reported a 30 percent rise in quarterly profit as it recorded higher investment income. Shares rose 3 percent to $60.90.

Even Morgan Stanley (MS.N), which reported a near 50 percent drop in profit, posted gains as the decline was smaller than feared, thanks to stronger-than-expected fixed-income trading results. Its shares gained 2.8 percent to $26.77.

But McDonald's Corp (MCD.N) was off 1.7 percent at $77.09, after the world's largest hamburger chain warned of accelerating food price inflation.

General Electric Co (GE.N) lost 2.5 percent to $19.89 as results failed to impress investors even after the largest U.S. conglomerate reported an 80 percent surge in first-quarter profit and raised its quarterly dividend.

Biogen Idec (BIIB.O) was the S&P 500's top gainer, up 18.3 percent at $102.41 after it released promising data from a clinical trial of an experimental multiple sclerosis drug.

UnitedHealth Group Inc's (UNH.N) quarterly profit flew past estimates and its shares jumped 7.9 percent to $47.72. The Morgan Stanley healthcare payor index .HMO gained 3.6 percent, the most in almost eight months.

Volume is expected to remain light on Thursday before a three-day weekend. U.S. and many global markets are closed on Friday in observance of Good Friday.

"As you approach every weekend, there seems to be some concern about being long," said North Star's Kuby. "It's becoming part of the dynamic."

(Reporting by Rodrigo Campos; Editing by Jan Paschal)