Global stocks rise; gold hits another high

London: World stocks rose while gold hit another record high and the dollar weakened on Wednesday after Federal Reserve minutes expressed confidence in the durability of the US economic recovery.

Federal Reserve officials raised their growth estimate for 2010, helping to offset Tuesday's data showing the US grew at a slower-than-expected pace in the third quarter.

But they did not see employment picking up soon. "Good macro news will always serve as a justification for a rise in the markets," said Giuseppe-Guido Amato, strategist at German brokerage Lang & Schwarz. MSCI's all-country world equities index was up 0.5 per cent, while European shares rose 0.6 per cent, with oil and mining stocks the main gainers. "At the moment, it's about owning commodities -- above all, precious metals, but also oils," Amato said.

Gold prices struck a record high for a second time this week, rising as high as $1,179.80 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.

US crude oil prices rose 0.4 per cent, rebounding above $76 per barrel to reverse some of the previous day's 2 per cent fall following disappointing US growth data and figures showing a big build in crude inventories.

DOLLAR FALLS

The dollar fell 0.3 per cent against a basket of major currencies, with selling encouraged as the US Federal Reserve's minutes described the US 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 rose 0.3 per cent against the dollar, taking it above $1.50, while the dollar hit its lowest in 10 months against the yen . Euro zone government bonds edged lower, pulling away from seven-week highs as equities rose.

Losses were limited, however, after strong demand at a sale of US five-year notes the previous session.

Earlier, Japan's Nikkei rose 0.4 per cent in a choppy session that saw it dip in and out of negative territory. Emerging stocks rose 0.4 per cent.