GLOBAL MARKETS - Oil, global stocks surge on upbeat economic data

By Herbert Lash

NEW YORK (Reuters) - Gold hit a fresh record high on dollar weakness and global stocks surged on Monday after upbeat economic news in the euro zone and better-than-expected U.S. home sales data bolstered appetite for riskier assets.

European shares posted their biggest one-day percentage gain in more than five weeks and an early rally on Wall Street reversed most of the losses from a three-day sell-off last week.

U.S. gold futures hit record highs above $1,170 an ounce, gaining more than 2 percent, as the dollar weakened broadly on expectations U.S. interest rates would stay low for some time.

Oil prices almost topped $80 a barrel, before paring some gains, as the sagging dollar and signs of buoyant demand from China, the world's second-largest energy consumer, lifted commodity prices.

The dollar slid after a Federal Reserve official affirmed expectations that U.S. interest rates would stay low for some time and U.S. housing data dampened the currency's safe-haven appeal.

Sales of previously owned U.S. homes jumped in October from the previous month a record 10.1 percent to their highest level in more than 2-1/2 years, the National Association of Realtors said.

Buyers rushed to take advantage of a popular tax credit for first-time buyers that had been scheduled to end in November.

"The (housing) data adds to bearish U.S. dollar momentum, as stronger-than-expected home sales data is bullish for equity markets," said George Davis, chief technical strategist at RBC Capital Markets in Toronto. "That decreases risk aversion and increases broad-based dollar weakness.