TRD: Gold holds near $1,430 backed by Libya unrest
Gold held near $1,430 an ounce on Tuesday, supported by violence in North Africa but struggling to gain traction as a retreat in oil prices prompted some investors to cash in gains after the last session's record high.
Spot gold was bid at $1,431.75 an ounce at 1009 GMT, against $1,430.74 late in New York on Monday. US gold futures for April delivery fell $2.30 an ounce to $1,432.20.
Prices hit a record $1,444.40 an ounce and oil rallied on Monday after troops loyal to Libyan leader Muammar Gadaffi launched a counter-offensive against rebels protesting against his 41-year rule, fuelling fears Libya was facing civil war. It later retreated, however.
'Despite the escalation of the unrest in Libya, gold has been struggling to gain a foothold above the old highs with some investors seemingly happy to lock in profit at these levels,' said Saxo Bank analyst Ole Hansen.
'It is still too early to say whether we are treading water before the next push higher, or if we actually need a retracement before the buyers feel comfortable enough to take it up into a new range.
'Given the fact that we have failed to push higher amid the highest level of uncertainty for the last two years, almost any setback in crude prices will have an impact on gold, and silver,' he added.
Holdings of the world's largest gold-backed exchange-traded fund, New York's SPDR Gold Trust, rose for the first time since February 1 on Monday, by 6.7 tonnes.-Reuters
