NEW YORK (PNN) - April 28, 2011 - The Dollar Index slid to an almost three-year low, Treasuries rose and gold rallied to a record after economic growth slowed. The Standard & Poor’s 500 Index climbed to the highest level since June 2008, as rising earnings and takeovers overshadowed the report on gross domestic product.

The Dollar Index, which tracks the currency against six major peers, tumbled 0.5% to 73.185 as of 12:47 p.m. in New York as it slid for an eighth straight day, its longest slump in two years. Ten-year Treasury yields lost four basis points, to 3.32%, gold jumped as much as 1.4% to $1,538.80 an ounce and silver rose for a second day. The S&P 500 climbed 0.2% to 1,357.85 and the Russell 2000 Index of small U.S. stocks reached a record for a second day.

The U.S. dollar and Treasuries reacted to government data showing gross domestic product expanded at a 1.8% annual rate in the first quarter. The growth trailed the 2% median forecast in a Bloomberg survey of economists and reinforced the Federal Reserve’s assessment that what it calls a “moderate economic recovery” (which is really an ongoing Depression) still requires record-low interest rates. A separate report showed jobless claims unexpectedly increased.

“We’re all reacting to the numbers and looking for sustainable growth,” said Firas Askari, head currency trader at Toronto at Bank of Montreal. “The dollar weakness is a trend that’s hard to break,” he said.