* Dollar slides to 6-week low vs euro, currency basket * Firmer equity markets boost appetite for risk (Updates throughout, changes dateline-pvs TOKYO) By Jan Harvey LONDON, July 20 (Reuters) - Gold rose more than 1 percent in Europe on Monday as the dollar slipped to a six-week low against a basket of currencies, boosting the precious metal's appeal as a currency hedge, and as oil prices climbed. Commodities across the board benefited from a sharper appetite for risk, dealers said, with equities touching a ten-month high in Asia as a solid outlook for corporate earnings tempted investors back into higher-yielding assets. Spot gold rose to a five-week high of $951.30, its firmest since June 12, and was bid at $950.30 an ounce at 0924 GMT, against $936.50 an ounce late in New York on Friday. "There is a combination of both a weaker dollar (and) appetite for commodities coming back with the hope of an economic recovery," said Alexander Zumpfe, a trader at precious metals house Heraeus. "From a pure technical point of view, we might see some higher prices over the next couple of days." The dollar slid to a six-week low against the euro and versus a basket of six major currencies as rising stock markets boosted appetite for higher-yielding currencies seen as riskier. Other commodities also benefited from stronger risk appetite, with oil climbing nearly $1 a barrel and copper rising to its highest level since October. Equities hit a ten-month peak in Asia as investors' confidence was boosted by a solid outlook for corporate earnings and speculation that U.S. lender CIT Group has probably escaped bankruptcy after news it clinched a last-minute $3 billion rescue deal. Banks and drugmakers also helped lift European shares. Traders are awaiting earnings reports from the likes of Texas Instruments, Caterpillar and Merck & Co this week, as well as Federal Reserve chair Ben Bernanke's testimony to Congress on monetary policy on Tuesday and Wednesday. BREAK HIGHER Analysts say the euro's break up through $1.42 may fuel further gains in the gold price. Bullion, like all dollar-priced commodities, becomes cheaper for holders of other currencies as the U.S. unit weakens. Demand for physical gold remained lacklustre, with the main bullion-backed exchange-traded fund, the SPDR Gold Trust, reporting a 0.31-tonne outflow on Friday. The fund said its gold holdings dropped more than 15 tonnes last week. Jewellery demand in India was also soft, pressured by the seasonal summer lull. On the supply side, Peter Hambro Mining, the Russia-focused FTSE 250 gold miner, said its gold output jumped 54 percent in the first half and said second-half production will be boosted by its Pioneer deposit. Among other precious metals, silver tracked gold higher, rising more than 2 percent to $13.70 an ounce from $13.39. "We still see more consolidation around these levels after the ongoing rally exhausts itself," said VTB Capital in a note. Platinum was at $1,179.50 an ounce against $1,171, while palladium was at $249.50 against $246.

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