* 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 expectations that U.S. interest rates will
remain low weighed on the dollar, 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 $1,167.45 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 a basket of competitors <.DXY>, closing in on
15-month lows. Comments from St Louis Federal Reserve President
James Bullard on Sunday reinforced expectations that U.S.
interest rates will remain low for some time, a factor that has
weighed on the currency.
"New highs in gold were a major catalyst in invigorating
confidence and pushing the dollar lower," Nomura currency
strategist Ned Rumpeltin said.
"Combined with the Bullard comments and some short covering
after last week's moves, the dollar is likely to remain under
pressure today."
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.
Gold's gain lifted other precious metals, while oil <CLc1>
gained 90 cents to $78.37 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 1.6 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 rose as well.
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.
U.S. stock futures were up around 1.1 percent <SPc1>,
pointing to a firmer open on Wall Street later.
The yield on two-year U.S. Treasuries edged up to 0.743
percent <US2YT=RR>, while benchmark 10-year notes <US10YT=RR>
yielded 3.39 percent.
(Additional reporting by Jessica Mortimer; editing by Stephen
Nisbet)
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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))
