* Expectation on continuously loose monetary policy
underpins gold
* Gold could rise to $1,450 - technicals
* Coming up: U.S. unemployment claims, weekly; 1230 GMT
(Adds comments, detail; updates prices)
By Rujun Shen
SINGAPORE, March 24 (Reuters) - Gold prices held steady on
Thursday as it drew support from the spreading turmoil in the
Middle East and talk of extended loose U.S. monetary policy
after lackluster home sales data.
Continued fighting in Libya, where western forces have
failed to dislodge Muammar Gaddafi's armour, calls for the
ouster of Yemen's president and Palestinian rocket strikes on
Israel have heightened geopolitical uncertainties in the
region.
"Gold is expected to remain firm, as there is a lot of
geopolitical uncertainty and money printing going on," said a
Singapore-based trader, referring to the looser monetary policy
adopted by Japan's central bank after the earthquake hit nearly
two weeks ago.
"But there is strong resistance at $1,440/$1,445 level, so
we'd need a good headline to break through," he added.
Spot gold inched up $1.14 to $1,437.34 an ounce by
0313 GMT, after hitting $1,440.90 in the previous session, which
was just off the record high of $1,444.40.
U.S. gold was little changed at $1,437.70 an ounce.
Technical analysis showed that spot gold may gain further to
$1,450 per ounce, according to Reuters market analyst Wang Tao.
Gold prices were also being supported by a record low in
U.S. home sales in February, which fanned speculation that the
Federal Reserve might extend its $600 billion bond purchase
programme. Concerns that the economy would be flooded by cheap
money add to gold's allure as an inflation hedge.
The dollar index edged up as the euro faced pressure
on heightened worries on euro zone's debt crisis, capping gold's
gains, but euro's loss could be limited on expectations of a
interest rate hike by European Central Bank next month.
"The impact on markets from euro zone's debt crisis has been
diminishing, as investors have confidence in the bloc's leaders'
ability to handle the problem, based on experience over the past
year," said Hou Xinqiang, an analyst at Jinrui Futures.
Gold miners were upbeat on prices of bullion going forward,
with Minera Andes Inc and US Gold Corp
forecasting $5,000 gold price in three to four years.
Spot silver inched down 0.4 percent to $37.23 an
ounce, after touching a 31-year high of $37.40 on Wednesday.
Precious metals prices 0313 GMT
Metal Last Change Pct chg YTD pct chg Volume
Spot Gold 1437.34 1.14 +0.08 1.26
Spot Silver 37.23 -0.13 -0.35 20.64
Spot Platinum 1751.74 -0.07 -0.00 -0.89
Spot Palladium 744.72 -0.97 -0.13 -6.85
TOCOM Gold 3755.00 33.00 +0.89 0.70 27738
TOCOM Platinum 4598.00 54.00 +1.19 -2.09 6623
TOCOM Silver 96.80 2.80 +2.98 19.51 1302
TOCOM Palladium 1954.00 27.00 +1.40 -6.82 136
COMEX GOLD APR1 1437.70 -0.30 -0.02 1.15 5514
COMEX SILVER MAY1 37.28 0.08 +0.21 20.48 2048
Euro/Dollar 1.4078
Dollar/Yen 81.00
TOCOM prices in yen per gram. Spot prices in $ per ounce.
COMEX gold and silver contracts show the most active months
(Editing by Himani Sarkar)
Reuters
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