* Gold at record, silver at 31-yr high as risk appetite dips
* Resignation of Portugal's PM underlines euro zone concerns
* Violence persists in Libya, further clashes seen in Yemen
(Releads, adds comment, graphics, updates prices)
By Jan Harvey
LONDON, March 24 (Reuters) - Gold hit record highs on
Thursday as the resignation of Portugal's prime minister ahead
of a summit of EU leaders on the European economy this week
revived jitters over the euro zone sovereign debt crisis.
Fresh concerns over the health of the bloc have combined
with violence in the Middle East and worries over radiation
leaks in Japan to blunt risk appetite, pushing gold prices to a
record $1,447.40 and silver to a 31-year peak at $38.13.
"The gold price is currently supported by safe haven demand,
stemming from three current crises - Libya and more generally
unrest in the Middle East/North Africa region, Japan and renewed
concerns over the periphery of Europe, particularly Ireland and
Portugal," said BNP Paribas analyst Anne-Laure Tremblay.
Spot gold <XAU=> was bid at $1,468.50 an ounce at 1505 GMT,
against $1,436.20 late in New York on Wednesday. U.S. gold
futures for April delivery <GCJ1> rose $9.20 an ounce to
$1,447.20. Silver <XAG=> was at $38.06 an ounce against $37.36.
The previous record for gold of $1,444.40 was set on March 7.
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 threat of financial contagion throughout the euro zone
is continuing to encourage interest in precious metals as a
safe-haven," said Standard Bank in a note.
"Not much is expected, in terms of a comprehensive package
to address the debt crisis from the EU Summit starting today."
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Graphics on euro zone crisis: http://r.reuters.com/hyb65p
Graphics on Mideast unrest: http://r.reuters.com/nym77r
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OIL EXTENDS GAINS
U.S. oil prices extended gains above $106 a barrel on
Thursday. Gold tends to benefit from rising oil prices both
because it is sometimes seen as a hedge against inflation, and
as it is often traded as part of a commodity basket. []
Western warplanes hit Libya for a fifth night, but so far
have failed to stop Muammar Gaddafi's tanks shelling rebel-held
towns, while other clashes have occurred in Yemen and Syria in
recent days. [] [] []
"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 (gold's) friend," said Commerzbank
analyst Eugen Weinberg.
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.
Platinum <XPT=> was at $1,761.24 an ounce against $1,751.81,
while palladium <XPD=> was at $755.30 against $745.69.
(Reporting by Jan Harvey; editing by Keiron Henderson)
