* Stocks rise; MSCI world equity index up 0.7 pct
* Gold hits record high, dollar weakest in more than a year
* U.S. Fed expresses confidence in sustainable recovery
By Jessica Mortimer
LONDON, Nov 25 (Reuters) - World stocks rose, gold hit
another record high and the dollar fell to its weakest in a year
against a currency basket on Wednesday after the Federal Reserve
expressed confidence in the durability of the U.S. recovery.
Federal Reserve officials raised their 2010 growth estimate
in the minutes to their November meeting, but they did not see
employment picking up soon. The report did not change the
market's view that U.S. rates will stay low for some time.
[]
"The Fed's comments are helping to lift investor sentiment,
driving a rally by commodity stocks," said Mic Mills, senior
trader at ETX Capital.
"But with Thanksgiving tomorrow, the market remains very
volatile," he added.
MSCI's all-country world equities index <.MIWD00000PUS> was
up 0.7 percent, while European shares <> rose 0.4 percent,
with commodity stocks among the main gainers, buoyed by gains in
gold, other metals such as copper and crude oil prices.
Gold prices <XAU=> struck a record high for a second time
this week, rising as high as $1,182.10 an ounce, lifted by a
newspaper report that India was "open to buying" more gold from
the International Monetary Fund and by broad dollar weakness.
U.S. crude oil <CLc1> prices rose 0.5 percent, taking them
above $76 per barrel.
DOLLAR SLIDES
The dollar <.DXY> slid 0.8 percent against a basket of major
currencies to hit its lowest level since August 2008, with
selling encouraged as the U.S. Federal Reserve's minutes
described the U.S. currency's recent falls as "orderly".
"When the Fed says the dollar's decline has been 'orderly'
... they're implicitly saying this is not something they will do
anything about," said Johan Javeus, chief currency strategist at
SEB in Stockholm.
The euro <EUR=> hit a 15-month high against the dollar of
$1.5096, while the dollar hit its lowest in 10 months against
the yen <JPY=>.
The dollar's losses accelerated after Russia's central bank
said would use part of its reserves to purchase Canadian dollars
<CAD=D4>, which traders said underlined moves by central banks
to diversify out of the U.S. currency. []
Expectations of prolonged low U.S. interest rates and signs
of global economic recovery have kept the dollar in a steady
decline since March.
Euro zone government bonds edged up, with Bund futures
<FGBLc1> reaching seven-week highs, buoyed by strong demand at a
sale of U.S. five-year notes and after an auction of German
five-year debt which analysts said went well.
Earlier, Japan's Nikkei <> rose 0.4 percent in a choppy
session that saw it dip in and out of negative territory.
Emerging stocks <.MSCIEF> rose 0.6 percent.
(Additional reporting by Jon Hopkins and Naomi Tajitsu in
London; editing by Philippa Fletcher)
((jessica.mortimer@thomsonreuters.com; Tel: +44207 542 7817,
Reuters Messaging: jessica.mortimer.reuters.com@reuters.net)
