* Rising fears over sovereign debt boost safe-haven assets
* Risk aversion lifts dollar but gold resilient
* Coming up: U.S. industrial production, Empire State
* Coming up: U.S. Fed policy committee meeting on Tuesday
(Updates, adds comment, changes dateline from TOKYO)
By Jan Harvey
LONDON, March 15 (Reuters) - Gold rose back above $1,100 an
ounce in Europe on Monday as rising fears over sovereign debt
after a Moody's report and a currency row betweeen China and the
United States prompted buying of the metal as a haven from risk.
Assets seen as higher risk, such as equities, crude oil and
industrial commodities like copper, all retreated as risk
appetite receded. However, gold edged up 0.6 percent.
Spot gold <XAU=> was bid at $1,102.80 an ounce at 0923 GMT,
against $1,099.50 late in New York on Friday. U.S. gold futures
for April delivery <GCJ0> on the COMEX division of the New York
Mercantile Exchange rose $1.10 to $1,102.80 an ounce.
Commerzbank analyst Eugen Weinberg said investors had been
cheered by the market's defence of the $1,100 an ounce level
last week, adding that a report from ratings agency Moody's that
highlighted burgeoning government debt was also helping prices.
"It is helping the market because if you are looking for
security you buy gold," he said.
"We are not seeing huge flows, but constant flows. As long
as interest rates stay at current levels, it also makes the
opportunity cost of buying gold relatively low."
Moody's Investors Service said on Monday the credit ratings
of the world's four largest triple-A sovereign debt issuers -
the United States, UK, France and Germany - and Spain were safe,
but risks to their blue-chip status had grown. []
"Speculation both the UK and U.S. could lose their
AAA-credit ratings should act to underpin the metals,
potentially drawing investment demand away from US treasuries,"
said James Moore, an analyst at TheBullionDesk.com, in a note.
Chinese premier Wen Jiabao also spooked the currency
markets, saying on Sunday the yuan was not undervalued, and
rejected international calls to allow the currency to rise.
He also said there was a chance the world economy may suffer
a double-dip recession as conditions in some countries remain
weak. []
DOLLAR FIRMS
The dollar rose broadly on Monday as a drop in stock markets
prompted some investors to shy away from riskier assets. []
Gold's resilience in recent months in the face of a rising
dollar has underlined the metal's appeal as a haven from risk as
sovereign debt fears in the euro zone and further afield shift
to the fore, analysts said. []
Traders are awaiting further direction from a welter of U.S.
data due later in the session, including industrial production
numbers for February, and a Federal Reserve policy setting
committee meeting on Tuesday. []
The metal ignored a media report that the German finance
ministry was considering the possibility of euro zone countries
using their central banks' gold reserves to back a European
Monetary Fund, after the Bundesbank said it was unaware of any
such plan. []
Among other commodities, oil prices retreated, pressured by
a stronger dollar and weak U.S. consumer confidence data that
boosted concern over weak demand in the world's top energy user.
Base metals were softer. [] []
The other precious metals, which are more industrial in use
than gold, retreated in line with other industrial commodities.
Silver <XAG=> was bid at $16.95 an ounce against $17.02.
Platinum <XPT=> was at $1,602 an ounce against $1,604.50,
while palladium <XPD=> was at $454.50 against $460. The metals
are primarily used in autocatalyst manufacturing.
(Reporting by Jan Harvey; Editing by Keiron Henderson)
