* Gold at new high as dollar falls
* Stocks benefit from higher commodity prices
* Two-year U.S. Treasury yield below 0.75 percent
By Jeremy Gaunt, European Investment Correspondent
LONDON, Nov 23 (Reuters) - Gold powered to another record
high on Monday as the dollar sank, while higher commodity prices
lifted world equities.
MSCI's all-country world stock index <.MIWD00000PUS> was up
0.9 percent, led by European and emerging market shares that are
sensitive to commodities.
Gold <XAU=> hit a record high at $1,167.35 an ounce before
slipping back a bit, bringing this year's gains to around 32
percent.
The main catalyst for gold's rise has been the falling
dollar, which makes the metal more attractive to non-dollar
investors and encourages others to hedge.
The U.S. currency was down nearly three-quarters of a
percent against at basket of competitors <.DXY>, closing in on
15-month lows. It is being battered by expectations that the
U.S. Federal Reserve will keep interest rates low for some time.
"The Fed is sounding like they mean it about keeping rates
low for an extended period -- way into 2010 if not 2011," said a
trader at an Australian bank.
Such a backdrop has driven large numbers of investors into
gold, which also benefits from a reputation as a safe haven in
times of economic uncertainty.
"You've got more high-profile hedge funds visibly investing
in gold. That's yet another factor encouraging moves into gold
by the wider investor community," said David Barclay, commodity
strategist at Standard Chartered in Hong Kong.
Gold's gain lifted other precious metals, while oil <CLc1>
gained 90 cents to $78.36 a barrel and commodities such as
copper also gained.
Copper <MCU3=LX> was up 1.7 percent, aluminium <MAL3=LX>
was half a percent higher and nickel <MNI3=LX> rose 1.6 percent.
STOCKS UP
European shares were one of the main beneficiaries of the
rise in commodity prices.
The pan-European FTSEurofirst 300 <> index of top
shares was up 1.4 percent, snapping a four-day losing streak.
Energy stocks were in demand because of the oil price gain.
Among big movers were Heritage Oil <HOIL.L>, which sold its
Ugandan interests to Italy's Eni <ENI.MI>.
BG Group <BG.L>, BP <BP.L>, Royal Dutch Shell <RDSa.L> and
Total <TOTF.PA> all also rose.
Miners also featured among the top performers as metal
prices gained, including Anglo American <AAL.L>, Antofagasta
<ANTO.L>, BHP Billiton <BLT.L>, Eurasian Natural Resources
Corporation <ENRC.L>, Rio Tinto <RIO.L> and Xstrata <XTA.L>.
Despite this, there is a general tone of caution from
investors at the moment, with many interested in locking in
their 2009 gains before the year end.
(Additional reporting by Jan Harvey, Joanne Frearson and
Lincoln Feast; Editing by Ruth Pitchford)
(To read Reuters Global Investing Blog click on
http://blogs.reuters.com/globalinvesting; for the MacroScope
Blog click on http://blogs.reuters.com/macroscope; for Hedge Hub
click on http://blogs.reuters.com/hedgehub)
((jeremy.gaunt@thomsonreuters.com; +44 207 542 1028; Reuters
Messaging: jeremy.gaunt.reuters.com@reuters.net))
