* Gold hits all-time high at $1,300 an ounce
* Bond prices up as U.S. stocks halt 4-week rally
* Dollar flat against euro after hitting 5-month high (Updates with U.S. markets)
By Walter Brandimarte
NEW YORK, Sept 27 (Reuters) - Gold reached a record high of $1,300 per ounce and U.S. Treasury prices rose on Monday as investors expect the Federal Reserve will pour more money into the U.S. economy to support the fledgling recovery.
The dollar held steady while U.S. and European stocks slipped on Monday as concerns about euro-zone debt caused investors to reassess the strength of the equity markets' recent rally.
The greenback has been pressured by expectations that the Fed will further ease monetary policy to support the U.S. economy -- and investors think that trend is not over.
"The bias is still to sell dollars right now in the wake of the Fed's announcement last week that it is ready to inject more stimulus to the U.S. economy," said Vassili Serebriakov, senior currency strategist at Wells Fargo in New York.
Gold benefited from the prospects of more monetary stimulus, which could prove inflationary down the road, as well as from some investors' flight-to-quality bid.
Spot gold
"Momentum is still very much in favor of gold," said Jesper Dannesboe, senior commodity strategist at Societe Generale. "I wouldn't dare go against it, and definitely wouldn't want to be short. There's good appetite to buy."
Investors snapped up U.S. Treasury debt, driven by their desire for safer investments and expectations of healthy demand at this week's Treasury auctions.
The price of the benchmark 10-year U.S. Treasury note
At 1 p.m. (1800 GMT), the Treasury will sell $36 billion of two-year Treasury notes, followed by $35 billion in five-year notes on Tuesday and $29 billion in seven-year notes on Wednesday.
On Wall Street, the major U.S. stock indexes declined in spite of a flurry of acquisitions.
Worries about euro-zone debt resurfaced after credit agency Moody's slashed its rating on some lower-grade debt of Anglo Irish Bank. For details, see [ID:nLDE68Q15A].
The Moody's downgrade offset early optimism with M&A activity, and forced investors to rethink the reasons that have bolstered U.S. stocks during the past four weeks.
"We are nearing the end of the quarter. We've had a very strong month," said Peter Jankovskis, co-chief investment officer at OakBrook Investments in Lisle, Illinois. "We may be in for a bit of consolidation here."
The Dow Jones industrial average <.DJI> declined 31.04 points, or 0.29 percent, at 10,829.22, while the Standard & Poor's 500 Index <.SPX> lost 4.31 points, or 0.38 percent, to 1,144.36. The Nasdaq Composite Index <.IXIC> fell 9.31 points, or 0.39 percent, to 2,371.91.
Europe's FTSEurofirst 300 index <.FTEU3> of top shares unofficially closed down 0.39 percent, while the MSCI All-Country World equity index <.MIWD00000PUS> was up just 0.04 percent, or essentially flat.
EURO-ZONE WORRIES
The euro was practically stable against the dollar at $1.3477, after reaching a five-month high, following Moody's decision to cut Anglo Irish Bank's unguaranteed senior debt by three notches and its subordinated debt by six.
Investors have been nervous about possible restructuring of Anglo Irish Bank's subordinated debt as government guarantees for such instruments expire later this week.
Against the Japanese yen, the dollar
"We had a brief consolidation earlier where we saw some strength in the dollar. But that has faded and we're back to the current trend of dollar weakness," he added.
U.S. crude oil