* Queensland closes border with New South Wales, Canberra

* Gold stocks gain as bullion hits record high

* NZ unemployment rate drops unexpectedly

Aug 5 (Reuters) - Australian shares fell 1% on Wednesday as fresh coronavirus-related restrictions fanned fears of further economic damage, though losses were limited by a rally in gold stocks after the precious metal surged to a record high.

The S&P/ASX 200 index was down 1% at 5,979.3, as of 0102 GMT.

Australia's Queensland state said it would seal off its border with New South Wales and capital Canberra to hold back a second wave of coronavirus cases.

Australia's second-most populous state Victoria has also enforced stringent movement controls and ordered the closure of large parts of the local economy in a bid to contain an alarming resurgence in coronavirus cases.

Heavyweight financials were the biggest laggards in the benchmark, easing up to 2.5% with top lenders Commonwealth Bank of Australia and Westpac Banking Corp dropping 2.6% and 3.1%, respectively.

Telecom firm Telstra Corp dropped 1.2% after announcing the sale of its Melbourne data centre for about $300 million.

On the flip side, gold stocks jumped 3.7% after bullion prices touched fresh highs as hopes of further U.S. stimulus and a weaker U.S. dollar bolstered the safe-haven asset's appeal.

Newcrest Mining and Australia-listed shares of AngloGold Ashanti climbed 3% and 4.7%, respectively.

The gains in gold stocks helped miners trade in the black as well.

New Zealand's benchmark S&P/NZX 50 index eased 0.4% to 11,728.31.

The country's unemployment rate unexpectedly declined in the second quarter, but the data did not fully reflect the weakness in the labour market as fewer people actively sought work.

(Reporting by Arpit Nayak in Bengaluru, Editing by Sherry Jacob-Phillips)