* Sovereign debt concerns boost safe-haven assets
* Risk aversion lifts dollar but gold resilient
* Coming up: U.S. Fed policy committee meeting on Tuesday
(Updates prices, adds comment)
By Jan Harvey
LONDON, March 15 (Reuters) - Gold rose on Monday as concern
over sovereign debt fuelled buying of the metal as a haven from
risk, after a Moody's report sparked fiscal concerns and as euro
zone finance ministers met to discuss financial help for Greece.
Assets seen as higher risk, such as equities, crude oil and
industrial commodities like copper, all retreated as risk
appetite receded and fears grew over the prospect of monetary
tightening in China. However, gold rose 0.5 percent.
Spot gold <XAU=> was bid at $1,105.10 an ounce at 1400 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 $3.90 to $1,105.60 an ounce.
Societe Generale analyst David Wilson said the safe haven
appeal of gold was starting to come into play again, as the
metal benefited from a flight to quality among investors.
"The combination of nervousness of debt and inflation is
benefiting gold," he said.
An EU source said euro zone finance ministers are likely to
agree on Monday on the principles and parameters of financial
help for Greece, if it is required, but leave out any sums until
Athens asks for them. []
Concern over the fiscal health of peripheral euro zone
economies like Greece has supported gold in recent weeks.
Moody's Investors Service said the credit ratings of the
world's four largest triple-A sovereign debt issuers - the
United States, Britain, France and Germany - and Spain were
safe, but risks to their blue-chip status had grown.
[]
Commerzbank analyst Eugen Weinberg said the increased focus
on growing government debt piles was underpinning interest in
gold. "It is helping the market because if you are looking for
security you buy gold," he said.
Chinese premier Wen Jiabao also spooked currency markets,
saying on Sunday the yuan was not undervalued, and rejecting
calls to allow the currency to rise. []
DOLLAR FIRMS
The dollar rose broadly on Monday as investors shied away
from riskier assets, extending gains after a measure of New York
manufacturing activity fell less than expected in March.
[] []
Gold pared some gains in response, but its overall
resilience in the face of a rising dollar has underlined its
appeal as a haven from risk as sovereign debt fears in the euro
zone and further afield shift to the fore, analysts said.
[]
For a graphic showing gold's declining correlation with the
euro-dollar exchange rate this year, click on:
http://graphics.thomsonreuters.com/310/GLD_CRRD0310.gif
Traders are awaiting further direction from U.S. data due
later in the session, including industrial production for
February, and a Federal Reserve policy setting committee meeting
on Tuesday. []
The metal ignored a report that the German finance ministry
was mulling the possibility of euro zone countries using central
bank 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, while base metals were softer. [] []
Strength in gold lifted the other precious metals, which are
mostly used in industry. Earlier, they retreated in line with
other industrial commodities like copper and aluminium.
Silver <XAG=> was bid at $17.05 an ounce against $17.02,
platinum <XPT=> was at $1,613.50 an ounce against $1,604.50,
while palladium <XPD=> was at $460 against $460.
(Editing by Amanda Cooper)
