UK's FTSE slips off record highs as miners retreat

* FTSE 100 falls 0.7 pct after record closing high on Thurs.

* Weir Group jumps on bid speculation

* Thomas Cook (Xetra: A0MR3W - news) up after Fosun buys stake

* Fall in gold price pegs back Fresnillo (Other OTC: FNLPF - news) and Randgold

By Sudip Kar-Gupta

LONDON, March 6 (Reuters) - Britain's top share index retreated on Friday after posting its highest-ever close in the previous session, with a pullback in mining stocks weighing on the market.

Bid speculation lifted engineer Weir, however, while travel group Thomas Cook, a mid-cap stock not in the top index, also surged after a Chinese company bought a stake in it.

The blue-chip FTSE 100 index closed 0.7 percent lower at 6,911.80 points, but remained near its record closing level of 6,961.14 set on Thursday and its intraday record high of 6,974.26 points hit on Monday.

The FTSE has yet to hit 7,000, a key target for many traders, and some dealers said uncertainty ahead of Britain's general election in May could hinder the rally in the near-term.

"The FTSE is looking a bit tired around these levels, with resistance coming in at the 6,960 level," said Nav Banwait, chief markets strategist at Thames Capital Markets.

Gold miners Fresnillo and Randgold fell around 5 percent on the back of a drop in the price of gold, while miners were also impacted as iron ore prices dropped towards record lows.

Gold fell to a two-month low on Friday after U.S. non-farm payrolls rose more than expected last month, fuelling speculation the Federal Reserve will raise rates sooner rather than later.

The prospect of higher U.S. rates can hit gold, since gold is a non-interest-bearing asset. Higher rates would boost returns on U.S. Treasuries and enhance their appeal compared to gold.

CHINA BOOST FOR THOMAS COOK

Weir rose 4.3 percent, with traders citing speculation it may be subject to a bid after a slump in its share price. Weir declined to comment.

Thomas Cook surged 24.5 percent after Chinese conglomerate Fosun International bought a 5 percent stake in the company.

Admiral Markets' Darren Sinden expected the FTSE to hit 7,000 this year, but added that weakness in the mining sector and the election uncertainty could see it consolidate around current levels in the short term.

"I think we will get through 7,000 points at some point, but the miners are still a bit of a drag on the index," he said. (Additional reporting by Alistair Smout; Editing by Andrew Roche)