* Gold, silver firmer; iShares holdings at record
* Coming Up: U.S. unemployment claims weekly; 1330 GMT
(Updates prices, adds quotes)
By Lewa Pardomuan
SINGAPORE, March 10 (Reuters) - Gold tracked oil higher on Thursday as
investors waited to see if the international community would agree to a "no-fly"
zone for Libya, while holdings in the world's largest silver exchange-traded
fund struck a record high, reflecting greater interest in the cheaper precious
metal.
Bullion traders remain focused on mounting unrest across the Arab world and
renewed concern about euro zone debt -- factors that sent prices to an all-time
high above $1,440 this week. Platinum and palladium were firmer but falling
equities were likely to weigh on sentiment.
Spot gold added $1.20 an ounce to $1,429.99 an ounce by 0707 GMT,
having struck a record high of $1,444.40 on Monday.
NATO and the European Union begin two days of talks on Libya on Thursday,
focusing on a possible "no-fly" zone after some of the fiercest fighting on the
ground in almost three weeks of clashes.
"Another factor that could see gold and silver higher would be the return of
the euro zone sovereign debt crisis. Investors will be looking forward to euro
zone policy makers' meeting this Friday. If there's no resolution, perhaps we
could see a new high," said Ong Yi Ling, an investment analyst at Phillip
Futures in Singapore.
"I think there's an increase in investment interest in silver with gold
hitting new record highs. Silver is commonly perceived as the poor man's gold."
Silver was steady at $36.07 an ounce, not far from a 31-year peak at
$36.70 hit on Monday.
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 Dec. 14,
2010.
"I think silver is only chasing gold. Some people think silver could reach
$100. But I guess it needs to surpass $40 first before hitting a new high," said
a dealer in Hong Kong.
"Sentiment in gold is neutral. People won't commit too much at these price
levels. There's a bit of buying at around $1,425. I guess jewellers would have
to buy. They have to do the business."
The physical gold market also lacked activity in Singapore, a centre for
bullion trading in Southeast Asia, where premiums for gold bars were unchanged
at $1 an ounce to the spot London prices.
"There's not much here actually. I guess gold has gone up because of firm
oil prices," said a dealer in Singapore.
Brent crude rose 0.3 percent to surpass $116 on Thursday after forces loyal
to Libyan leader Muammar Gaddafi bombed oil industry infrastructure, inflicting
what could be longer-term damage on the country's exporting capacity.
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 unrest in North Africa
and the Middle East that sent oil prices higher.
The White House on Wednesday strongly defended its response to the turmoil
in Libya, insisting it has taken "dramatic action" and rebutting criticism that
its consensus-based approach is too cautious.
With Libyan rebels fragmented and disorganized and Gaddafi's forces
successfully counter-attacking, the Obama administration has been struggling to
craft a strategy that forces Gaddafi from power without entangling the United
States in a new war in the Muslim world.
In currencies, the euro edged lower against the U.S. dollar, with further
pullbacks seen likely, as worries about how Europe will address its fiscal
problems offset expectations of an upcoming rate hike by the European Central
Bank.
The goal for Friday's euro zone summit, to be attended by 17 heads of state,
is to agree a competitiveness pact to be adopted by the bloc members to show
their commitment to overhauling their economies.
China's import of commodities, most of which posted strong increases in
January, may finally show signs of easing in February as an extended holiday
season disrupted shipments and high prices cut orders.
Precious metals prices 0707 GMT
Metal Last Change Pct chg YTD pct chg Turnover
Spot Gold 1429.99 1.20 +0.08 0.74
Spot Silver 36.06 0.01 +0.03 16.85
Spot Platinum 1798.75 2.26 +0.13 1.77
Spot Palladium 779.00 2.03 +0.26 -2.56
TOCOM Gold 3818.00 5.00 +0.13 2.39 40676
TOCOM Platinum 4872.00 -8.00 -0.16 3.75 9917
TOCOM Silver 95.50 0.10 +0.10 17.90 1050
TOCOM Palladium 2084.00 -31.00 -1.47 -0.62 273
Euro/Dollar 1.3847
Dollar/Yen 82.89
TOCOM prices in yen per gram. Spot prices in $ per ounce.
(Reporting by Lewa Pardomuan; Editing by Clarence Fernandez)
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