Gold steadies on oil gaining (Reuters) (10-03-2011)

SINGAPORE – Gold steadied on Thursday although there was a rebound in oil prices as investors waited to see if the international community would agree to a "no fly" zone for Libya.

Spot gold was steady at $1,429 by 0231 GMT, having struck a record high of $1,444.40 an ounce on Monday while bullion traders remain focused on mounting unrest across the Arab World and renewed concern about euro zone debt.

U.S. gold futures for April traded around $1,429.6 an ounce. The contract hit record at $1,445.70 on Monday, mainly due to tensions in North Africa and the Middle East that sent oil prices higher.

The physical gold market also lacked activity in Singapore, a center for bullion trading in Southeast Asia.

Silver was steady at $35.92 an ounce, off a 31-year peak around $36 hit on Monday, with holdings in the world's largest silver exchange-traded fund struck a record high, reflecting greater interest in the relatively cheaper precious metal.

The iShares Silver Trust said its holdings hit a record high at 10,974.06 tonnes by March 9. The previous record was 10,964.14, set on December 14, 2010.

Platinum and palladium were mostly steady but falling equities were likely to weigh on sentiment.

Source: Reuters