* World stocks firms near 2009 high
* Gold hits record high, oil prices gain
* Dollar struggles on view Fed will keep interest rates low
By Naomi Tajitsu
LONDON, Nov 18 (Reuters) - Gold prices hit a record high and
oil and stock prices around the world rose on Wednesday, while
the dollar eased off ahead of U.S. inflation data and minutes
from the Bank of England's November meeting.
World shares, as measured by the MSCI world equity index,
edged up near their highest of 2009 hit at the start of the
week, while gold rallied to $1,145.95 per ounce, its
strongest-ever level.
The dollar slumped against a currency basket, restrained by
the ongoing belief that the Federal Reserve will keep the Fed
funds rate at essentially zero, keeping the returns on
dollar-denominated assets low for some time to come.
European shares rose in early trade on the back of rising
bank stocks approaching their highest level in more than a year
hit on Monday. Asian stocks had risen earlier in the day, and
analysts said expectations for ongoing low rates would keep
demand for shares intact.
"Our expectation is that we can add to these gains ... The
interest rate environment is very friendly," said Henk Potts,
equity strategist at Barclays Stockbrokers.
The MSCI all-country world equity index <.MIWD00000PUS> rose
0.3 percent, hovering near its highest level since September
2008, which it hit on Monday. The index has rallied roughly 75
percent from a trough in March.
Spot gold <XAU=> rose was up around half a percent on the
day, having rallied nearly 10 percent so far this month.
U.S. crude oil <CLc1> rose 0.7 percent, extending gains into
a third day.
The FTSEurofirst 300 index <> rose a quarter of a
percent to a few points below its highest level since October
last year.
The index is up around 24 percent in 2009 and has surged 60
percent since hitting a record low in March.
Emerging stocks <.MSCIEF> rose 0.4 percent on the day.
DOLLAR DOWNTREND CONTINUES
The dollar <.DXY> fell 0.3 percent against a basket of major
currencies, sticking close to a 15-month low hit on Monday.
Analysts said the broad downtrend in the beleaguered U.S.
currency remained intact even as Fed Chairman Ben Bernanke this
week has acknowledged its weakness -- a rarity for the U.S.
central bank.
"The relatively sanguine view on the U.S. dollar ... coupled
with the belief that asset prices are not forming another
bubble, should provide a green light for recent trends to
continue," said Lauren Rosborough, senior currency strategist at
Westpac in London.
Still, she added that some asset markets were looking
overstretched following dramatic rallies this year, and that the
"bull" trade was not as strong as it was in past months.
Euro zone Bund futures for December delivery <FGBLc1> were
largely flat on the day at 122.22.
Market participants awaited a reading of U.S. inflation
later in the day to better gauge the outlook for prices and
interest rates.
Excluding volatile food and energy prices, U.S. CPI is
expected to edge up 0.1 percent on the month in October,
following a 0.2 percent rise in the previous month, while rising
1.6 percent on the year.
(Editing by Andy Bruce)
