* Gold hits record high above $1,120
* Stocks weaken
* Dollar slightly firmer but near 15-month lows
By Jeremy Gaunt, European Investment Correspondent
LONDON, Nov 12 (Reuters) - Gold rose above $1,120 an ounce
to a fresh record high on Thursday, the U.S. dollar hovered near
15-month lows while shares weakened, particularly in emerging
markets.
Gold prices pushed to the record high in part because of
dollar weakness <XAU=>. A weak U.S. currency makes metals priced
in dollars less expensive for holders of other currencies.
"What is interesting is that we move from high to high every
day (in dollar terms), but in euro terms, we're still far away
from the old high," said Michael Kempinski a trader at
Commerzbank.
Other commodities were also supported by the weak dollar.
The dollar roses slightly against a basket of major
currencies <.DXY>, but held very close to 15-month lows.
Prospects that U.S. interest rates will remain at negligible
levels for some time, have hit the currency. It is down 1.5
percent against the basket this month for a 7.4 percent slide
over the year-to-date.
With a light economic data calendar on Thursday, apart from
strong Australian jobs numbers that boosted the Aussie dollar to
a 15-month high, the broader market was left to consolidate.
"The dollar is lower mainly because interest rates are low,
so there's no support there," said Marcus Hettinger, currency
strategist at Credit Suisse in Zurich.
The euro was down 0.3 percent at $1.4932 <EUR=>. It had
touched $1.5049 on trading platform EBS on Wednesday, within
sight of the 2009 high of just above $1.5060 hit last month.
STOCKS WEAKER
World stocks were weaker, with the MSCI all-country world
index <.MIWD00000PUS> down 0.4 percent and the emerging market
component <.MSCIEF> off nearly 1 percent.
European shares were also lower with the FTSEurofirst 300
<> index down 0.4 percent.
Investors remain fairly bullish, however, with signs that at
least parts of the world economy are gaining traction.
The Baltic Dry Freight Index <.BADI>, which can be a proxy
for world trade patterns, rose sharply, pushed up by freight of
iron ore to China.
"A 10th straight increase for the Baltic Dry and a 15-month
high for AUD/USD (Australian/U.S. dollar) do not imply that
sentiment is about to turn over," Kenneth Brough, an economist
at Lloyds TSB, said in a note.
Euro zone government bonds yields fell as stock weakness
boosted demand.
(Additional reporting by Jamie McGeever, editing by Mike
Peacock)
