Gold rises as earthquake hits Japan and tensions in Middle East continue (Reuters) (11-03-2011)

SINGAPORE – Gold appeared with gains on Friday following a major earthquake hit on the northeast Japan and worries about the Middle East unrest.

Spot gold though remained on track for its biggest weekly decline since late January, down more than $20 from a lifetime high hit at the start of the week.

Gold added $3.66 to $1,416.25 by 0730 GMT, but a firming U.S. dollar could also cap gains. Gold hit a record of $1,444.40 on Monday, when investors poured money into bullion as oil jumped on violence in Libya and after the downgrade of Greece's credit rating reignited worries about euro zone sovereign debt.  

U.S. gold futures for April rose $3.9 to $1,416.4 an ounce. The contract hit record at $1,445.70 on Monday.  

Spot gold is expected to fall more next week to a range of $1,360 to $1,376 per ounce based on its wave pattern and a Fibonacci analysis, while Brent crude declined $2 towards $113 on Friday as a quiet start to the planned "day of rage" in Saudi Arabia eased concern that unrest would spread in the world's top oil exporter, prompting investors to unwind positions.             

Silver steadied at $35.28 an ounce, after a 31-year peak above $36 on Monday to track rally in gold and also due to a growing interest in the metal as an alternative investment.

Holdings on iShares Silver Trust were unchanged at a record high at 10,974.06 tonnes.

Source: Reuters