UPDATE 6-Gold surges on fresh safe-haven buying

* European, U.S. equities slip on credit crisis fears

* Bundesbank says no plans to sell more gold in next 12 mths

* Gold climbs nearly 5 pct to day highs in euro terms

(Recasts, updates prices, adds comment)

By Jan Harvey

LONDON, Sept 29 (Reuters) - Gold climbed 3 percent on Monday as fresh worries over the health of the global financial sector sparked buying of safe-haven assets such as bullion.

In euro terms, gold was up nearly 5 percent.

However, other precious metals used in industry slipped.

Platinum and palladium wilted as fears over the outlook for the automotive sector prompted selling, while silver, used in products such as batteries and bearings, fell as the uncertain economic outlook prompted demand fears.

"Gold was weaker earlier on, but it has bounced back," said Stephen Briggs, metals analyst at RBS Global Banking & Markets. "For the moment, it is breaking away from its slavish attachment to the dollar."

"It doesn't look as though the financial problems are going to pass quickly, so this is gold's moment in the sun," he said.

Spot gold XAU= was quoted at $898.60/900.60 at 1427 GMT, up 2.3 percent from $878.40 at the nominal New York close on Friday.

Gold priced in euros meanwhile rose nearly 5 percent to a day high of 629.35 euros, against 600.99 euros at the nominal close on Friday.

U.S. stock markets tumbled on Monday as investors worried about the stability of banking stocks after Wachovia Corp WB.N became the latest to succumb to the credit crisis, having agreed to sell its banking operations to Citigroup (C.N).

The falls prompted a flight to safety among investors. The U.S. 30-year Treasury bond gained more than 2 full points in a powerful safe haven rally. [ID:nNYG001329]