* Gold hits new record high
* World stocks gain, wipe out October losses
* Dollar slightly weaker
By Jeremy Gaunt, European Investment Correspondent
LONDON, Oct 7 (Reuters) - Gold hit another record high on
Wednesday as the dollar slipped and global stocks rose for the
third day running, erasing their losses in October.
Investors continued their scramble for yield, lifting the
Australian dollar to 14-month highs on the prospects for higher
interest rates after Tuesday's tightening. []
Gold <XAU=> trimmed some gains early but then rose as high
as $1,048.20 an ounce, easily eclipsing Tuesday's $1,043.45
record.
The metal has been driven higher in part by concerns that
the dollar is losing favour, including potentially as the
currency for settling oil trades. []
Despite the headline figure, however, gold remains far below
its inflation-adjust record from the 1980s.
Investor Jim Rogers, one of the biggest bulls during this
decade's commodities rally, said he would stay clear of buying
gold for now, although he predicted prices will continue to go
up over the long term. []
"Gold has hit a new high and I don't like to buy something
at record prices unless there are extremely strong fundamental
reasons," he said.
World equities as measured by MSCI, in the meantime, added
another 0.4 percent and have now wiped out sharp losses
sustained in the first two days of October. They stand 26
percent higher for the year. <.MIWD00000PUS>
The pan-European FTSEurofirst 300 <> index was up 0.1
percent after the index gained more than 2 percent on Tuesday.
Earlier on Wednesday, Japan's Nikkei average <> closed
1.1 percent higher.
DOLLAR DIPS
The dollar slightly weaker against a basket of major
currencies <.DXY> while higher-yielding currencies such as the
Australian dollar <AUD=D4> were in favour.
"With the view that the low interest rate policy in the U.S.
will likely be around for a while, an abundant supply of dollars
is flowing into higher-yielding currencies such as the
Australian dollar and emerging market currencies," said Kazuyuki
Kato, treasury department manager at Mizuho Trust & Banking.
The greenback came under pressure on Tuesday after a report
of forex diversification by oil-producing countries. Some of the
countries later denied such a move.
The euro was flat at $1.4722 <EUR=>.
Yields on euro zone government bonds were slightly lower
with the 10-year yield at 3.152 percent <EU10YT=RR>.
(Editing by Mike Peacock)
