UPDATE 4-Gold climbs nearly 5 pct as investors seek safety

* Gold at six-month high in euro terms on flight to safety

* U.S., European stock markets tumble on investor worries

* Platinum, palladium, silver track gold higher

(Adds comment, updates prices)

By Jan Harvey

LONDON, Oct 6 (Reuters) - Gold prices rose nearly 5 percent on Monday, leading other precious metals higher, as a slide in stock markets sparked a flight to safety.

In euro terms, the metal reached 645.33 euros an ounce, its strongest since late March, when it hit a record high of 651.54.

Traders largely shrugged off the effects of a firmer dollar and weaker oil prices -- usually the main external drivers of gold -- which should have pressured the metal lower. Platinum, silver and palladium all posted gains in gold's wake.

Spot gold <XAU=> was quoted at $873.50/875.50 an ounce at 1413 GMT, up from $834.80 in late New York trade on Friday.

"There is a flight to gold as a safe haven again today, which is supporting prices," said Dresdner Kleinwort consultant Peter Fertig.

"The factors which normally drive gold are heading lower, except the stock markets, and the rising risk aversion of investors."

U.S. stocks slid at the open, reflecting losses on European markets earlier in the session, as the widening fallout from the credit crisis spooked investors. [ID:nN06406373]

Losses on the equity markets typically spur buying of alternative assets, such as bullion.

The precious metal also benefited from strong demand from smaller investors for investment coins and bars.

"We feel extremely positive on gold prices as investors rush to buy gold coins as protection against further market volatility," said Fairfax analyst John Meyer.

"Gold seems so much more tangible an investment than many other instruments and is not vulnerable to rising supply," he added. "(And) gold looks good in an inflationary environment."  Continued...