By Arpan Mukherjee Of DOW JONES NEWSWIRES WELLINGTON (Dow Jones)--Gold was little changed in Asia, but growing political uncertainty in Europe and its implications for the debt crisis could deepen investor concerns and weigh on the yellow metal which has lately been trading more like a risk asset rather than a safe haven, market participants said Monday. At 0451 GMT, spot gold was at $1,581.10 a troy ounce, up 70 cents from its previous close. "The market is more concerned about Greece," and seemed to be "ignoring" the cut in reserve requirement ratio for banks in China, a Hong Kong-based trader said. Some physical buying helped push prices a touch higher earlier in the session, but the impact was limited, he said. Spot gold touched an intra-day high of $1,585.90/oz earlier in the day, but traded as low as $1,578/oz at one point. China boosted liquidity over the weekend, cutting the cash reserve requirement ratio by 50 basis points amid talk that further easing measures may be on the way. But the focus was more on failed coalition talks in Greece over the weekend, with President Karolos Papoulias calling a final meeting Monday to put together a new government. "The break below $1,580/oz compels us to pare back our near-term bullish view for gold, as risk is now for a move toward the range lows near $1,520/oz," Barclays Bank said in a report. A stronger dollar will also continue to weigh on sentiment as it makes the metal more expensive for holders of other currencies. The Hong Kong trader said only if the yellow metal breaks above the $1,600/oz level this week can it be considered a reversal in market sentiment. ANZ analyst Natalie Robertson said in a note that after China's move to boost liquidity, market players are hopeful the U.S. Federal Reserve will also go for additional easing, given the slowing momentum in US economic data and growing uncertainty over Europe's banking system. In the case of silver, Barclays said "a decisive break below $28.50/oz-$28.60/oz in silver confirms our bearish view toward $26/oz. At 0451 GMT, spot silver was at $28.73/oz, down 16 cents. The house said that the platinum group of metals has been weighed down by concerns about a slowdown in China. Despite platinum receiving a boost early this year due to supply disruptions in South Africa, the market is likely to be in surplus, the house said. "The weaker-than-expected start to consumption in China has presented downside risk to palladium, but we continue to expect the palladium market to return a deficit this year, in turn offering the most supported gains across the complex over the next year," the house noted. Spot platinum was at $1,462.50/oz, up $1.20 and palladium was at $600.10/oz, up 10 cents. -By Arpan Mukherjee, Dow Jones Newswires; 64-4-471-5990; arpan.mukherjee@dowjones.com

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