PRECIOUS-Gold climbs more than 1% as attacks on Saudi facilities spur demand

* Oil surges nearly 20% at one point, world stocks slide
* Fed, BoJ meetings in focus later in the week
* Near-term support for gold around $1,500/oz - analyst

(Updates prices)
By Brijesh Patel
Sept 16 (Reuters) - Gold rose more than 1% on Monday after
an attack on oil facilities in Saudi Arabia inflamed worries
over the stability of the Middle East, driving investors to seek
refuge in assets seen as a haven from risk.
A spike in oil prices by as much as 20% in response to the
attack also raised concerns over a potential rise in
inflationary pressure, against which gold is often seen as a
hedge.
Spot gold XAU= was up 0.9% at $1,501.73 per ounce as of
1254 GMT, paring earlier gains of 1.3%. U.S. gold futures
GCcv1 rose 0.7% to $1,509.80.
"The reaction is driven by two factors - one is that people
are treating gold as some sort of inflation hedge in this
environment," Julius Baer analyst Carsten Menke said.
"The second and the most important factor is the increase in
geopolitical tensions, (with) uncertainties related to this
event," he added. "People are seeking shelter in the gold
market."
Yemen's Iran-aligned Houthi group claimed responsibility for
the attack on two plants at the heart of Saudi Arabia's oil
industry on Saturday, which knocked out more than half the
kingdom's output. U.S. President Donald Trump on Sunday said the United States
was "locked and loaded" for a potential response after a senior
official in his administration said Iran was to blame.
Gold is often used as a safe store of value during times of
political and financial uncertainty.
While the attack sparked the biggest one-day rise in gold
prices in nearly two weeks, an easing of tensions may lead to a
swift retracement, analysts said.
"Near-term support for bullion sits around the psychological
$1,500," MKS PAMP said in a note. "However the fluid nature of
the Saudi Arabia situation may see gold test back toward $1,480
- $1,485 should there be no further escalation."
The attacks sparked supply fears in the oil market, sending
crude prices to four-month highs, while weak economic data from
China sapped investor appetite for riskier assets. MKTS/GLOB
Central banks globally face increasing pressure to dole out
monetary support for flagging economies as the U.S.-China trade
dispute hurts trade and business sentiment.
Investors are looking to the U.S. Federal Reserve and Bank
of Japan policy meetings on Wednesday for signals on their
future policy path. FEDWATCH Gold tends to appreciate on expectations of lower interest
rates, which reduce the opportunity cost of holding non-yielding
bullion.
Silver XAG= jumped 2.2% to $17.81 an ounce, while platinum
XPT= was steady at $958.49.
Palladium XPD= was up 0.1% at $1,607.73 per ounce after
hitting a record high of $1,626.81.