* China raises reserve rate requirements
* Brent crude oil <LCOc1> falls, below $115 a barrel
* Investors nervous about violence in Bahrain
(Updates prices, adds detail)
By Rebekah Curtis
LONDON, March 18 (Reuters) - Gold rose on Friday on
lingering concerns about the economy and oil prices despite
Libya's announcement of a ceasefire, while investors looked to
an intervention in the yen as a move that could calm markets.
Bullion remained underpinned by market uncertainty as France
said it was still cautious about the ceasefire, and with Britain
on Friday preparing warplanes for action. []
Gold was at $1,420.10 an ounce at 1536 GMT from $1,402.40
late in New York on Thursday. Earlier the metal was little
changed after China's central bank raised lenders' required
reserves by 50 basis points. []
Muammar Gaddafi's government declared a ceasefire to protect
civilians and comply with a United Nations resolution passed
overnight, Libyan Foreign Minister Moussa Koussa said.
The metal earlier hit a session high of $1,423.70 an ounce,
supported by the U. N.'s approval of military action to contain
Gaddafi, while unrest in Bahrain and Yemen has also unnerved
investors. [] [] []
"If that (the ceasefire) actually stands and is sustained,
then concerns soften in regard to the wider implications for the
whole region," said Carl Firman, an analyst at Virtual Metals.
"If the MENA (Middle East and North Africa) region
stabilises ... we'll see confidence return," he added.
Also curbing investors' flight to gold as a safe haven from
inflationary pressures, Brent crude oil prices reversed earlier
gains to trade below $115 an ounce after the ceasefire
announcement. []
A weaker U.S. dollar against a basket of currencies also
supported dollar-priced gold.
U.S. investment bank Goldman Sachs <GS.N> forecast, however,
gold prices would rally to a new high of $1,480 an ounce in
three months on declining U.S. real interest rates. Gold hit a
record $1,444.40 on March 7. []
GLOBAL UNCERTAINTY
Japan's battle with a nuclear crisis after Friday's
earthquake and tsunami has also shaken confidence in global
markets this week. <nTOPNOW4>
"The uncertainty across the different global centres is
still there, and that should support precious metals," said Saxo
Bank analyst Ole Hansen.
In the wake of the crisis, Japan bought billions of dollars
to restrain a soaring yen, and traders reported intervention by
European central banks, kicking off joint action by the world's
richest nations to calm markets. []
In recent sessions risk aversion mounted to such heights
that even gold, traditionally a safe haven from risk, was no
exception to the broad sell-off as investors sold the metal to
cover losses elsewhere.
"When everything turns into risk (aversion) mode, no one
stays clear of that and the same thing happened for precious
metals," Hansen said.
But potential stability in the yen may soothe investors.
"The yen probably holds the key now," Hansen added. "If they
manage to keep the yen at these levels, that could help
stabilise the markets in general and also gold."
Joining the rally, spot silver <XAG=> was at $35.04 an ounce
from $34.18, but it came off a session high of $35.36.
Platinum <XPT=> was at $1,714.99 an ounce from $1,697.49 and
palladium <XPD=> traded at $729.00 an ounce from $704.50.
(Editing by James Jukwey and Jane Baird)
