Gold goes higher as Libya is in the centre of attention (Reuters) (25-02-2011)

SINGAPORE – Spot gold reached higher levels on Friday headed for its fourth consecutive week of gains, with investors watching closely the tensions in Libya and the energy market.

Spot gold inched up 0.4 percent to $1,406.80 an ounce by 0651 GMT, headed for a 1.3 percent gain from a week earlier.

The most active U.S. gold futures contract edged down 0.6 percent to $1,407.60.

Spot gold is estimated to consolidate between $1,390 and $1,410 per ounce as the correction on Thursday has temporarily violated its uptrend while holdings in the SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, dipped to a nine-month low of 1,211.568 tons.

Spot silver climbed 1.8 percent to $32.67, headed for its biggest monthly rise since May 2009, at 16 percent.

Holdings in the world's largest physically backed exchange-traded fund, rose to a six-week high of 10,666.35 tons.

Spot palladium which led the precious metals complex last year with a dazzling 97 percent annual gain, was on course for a three-percent monthly decline, snapping a seven-month winning streak.

Source: Reuters