* World stocks rise to 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 markets around the world rose on Wednesday as
investors picked up assets that were seen appreciating further
as the global economy recovers.
The dollar fell broadly on the view that U.S. interest rates
will stay low well into 2010, while market participants awaited
a reading of U.S. inflation later in the day to better gauge the
outlook for prices and rates.
Gold rallied to $1,149.15 per ounce, its strongest-ever
level, while world shares, as measured by the MSCI world equity
index, edged up near their highest of 2009 hit at the start of
the week. Wall Street looked set to gain slightly on Wednesday.
"Being short on the market is very hard at the moment," said
Jacques Henry, stocks analyst at Louis Capital Markets, in
Paris.
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 on the back of rising mining and bank
stocks, and approached their highest level in more than a year
hit on Monday.
The MSCI all-country world equity index <.MIWD00000PUS> rose
half a percent on the day to hover 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 0.6 percent on the day, having rallied
nearly 10 percent so far this month. Analysts at Citi said
demand from central banks were helping to boost the price of the
precious metal.
"Reserve diversification into gold assets represents a wider
trend amongst central banks as the value of the dollar
declines," they said in a note.
U.S. crude oil <CLc1> rose 1.0 percent, extending gains into
a third day.
The FTSEurofirst 300 index <> rose 0.4 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 0.6 percent on the day.
Euro zone Bund futures for December delivery <FGBLc1> were
largely flat on the day.
DOLLAR DOWNTREND CONTINUES
The dollar <.DXY> fell 0.6 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.
As the dollar struggles, market participants focused on U.S.
President Barack Obama's visit to China, where Chinese Premier
Wen Jiabao on Wednesday said Beijing does not seek a trade
surplus with Washington and wants balanced, bilateral trade.
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Wen avoided making any statements on the yuan. Interest in
the possibility of a yuan revaluation has been rising, although
few in the market expect any near-term changes to Beijing's
currency policy.
Data due at 1330 GMT are expected to show that U.S. CPI,
excluding volatile food and energy prices, edged up 0.1 percent
on the month in October, following a 0.2 percent rise in the
previous month. It is seen rising 1.6 percent on the year.
(Editing by Toby Chopra)
