* Gold climbs, silver hits 31-yr high as risk appetite wanes
* Resignation of Portugal's PM underlines euro zone concerns
* Violence persists in Libya, further clashes seen in Yemen
(Updates throughout, changes dateline, pvs SINGAPORE)
By Jan Harvey
LONDON, March 24 (Reuters) - Gold and silver prices rose on
Thursday as jitters over the euro zone sovereign debt crisis,
violence in the Middle East and worries over radiation leaks in
Japan conspired to blunt risk appetite.
Gold prices climbed back towards record highs above $1,440
an ounce and silver touched a fresh 31-year high at $37.72 as
investors turned to precious metals as a haven from risk.
Spot gold <XAU=> was bid at $1,441.54 an ounce at 1047 GMT,
against $1,436.20 late in New York on Wednesday. U.S. gold
futures for April delivery <GCJ1> rose $4.00 an ounce to
$1,442.00. Silver <XAG=> was at $37.70 an ounce against $37.36.
"Given the geopolitical environment, concerns about Portugal
and other peripheral countries, euro zone debt concerns and the
still extremely low interest rate environment, it is not
surprising the trend is your friend," said Commerzbank analyst
Eugen Weinberg.
Concern over the indebtedness of some smaller euro zone
members returned to the spotlight on Thursday after Portuguese
prime minister Jose Socrates resigned, a move set to dominate a
summit of EU leaders starting Thursday. []
Socrates quit after parliament rejected his government's
latest austerity measures aimed at avoiding EU financial
assistance. Lisbon needs to refinance 4.5 billion euros of
sovereign debt in April.
The return to prominence of euro zone sovereign debt fears,
a key factor pushing gold prices to record levels last year, has
given a fresh boost to both silver and gold on Thursday.
"The return of European sovereign issues to the spotlight,
with expectations high for an imminent Portuguese bailout, has
pushed gold to within a couple of dollars of its March 7 record
high of $1,444," said UBS analyst Edel Tully in a note.
"Press releases yesterday suggesting the lack of a
comprehensive 'grand bargain' package from the EU Summit until
June at least have also helped silver trade to a 31-year high."
OIL EXTENDS GAINS
Among other commodities, U.S. oil prices extended gains on
Thursday, rising back above $106 a barrel as concerns over
ongoing violence in the Middle East and North Africa outweighed
worries over the financial health of the euro zone. []
Gold tends to benefit from higher oil prices, both because
it is sometimes seen as a hedge against oil-led inflation, and
because it is often traded as part of a commodity basket
dominated by crude oil.
Western warplanes hit Libya for a fifth night on Thursday,
but so far have failed to stop Muammar Gaddafi's tanks shelling
rebel-held towns or dislodge his armour from a strategic
junction in the east. []
Other clashes have been reported in Yemen and Syria in
recent days. [] []
"Risk appetite remains hobbled by geopolitical tensions,"
Credit Agricole analyst Robin Bhar said in a weekly note. "The
Libyan crisis has, if anything, intensified over the last week
with the advent of Western bombing."
Elsewhere, concerns persisted in Tokyo over radiation
leaking from a nuclear plant crippled in the earthquake and
tsunami that hit northeast Japan earlier this month.
SolarWorld <SWVG.DE>, Germany's No.2 solar company by market
value, sees higher sales this year and next, taking heart from a
boost to the renewable industry following Japan's nuclear
crisis. []
Silver use in the fabrication of photovoltaic, or solar,
cells has grown rapidly in recent years and is set for further
expansion, metals consultancy GFMS said in its latest industry
report on the metal for the Silver Institute.
Among other precious metals, platinum <XPT=> was at
$1,753.55 an ounce against $1,751.81, while palladium <XPD=> was
at $748.22 against $745.69.
(Reporting by Jan Harvey; Editing by Alison Birrane)
