* Gold, silver steady after hitting successive highs
* Spot gold targeting $1,450 - technicals
* Coming up: ECB rate decision; 1245 GMT
(Adds detail, comments; updates prices)
SINGAPORE, March 3 (Reuters) - Gold was flat on Thursday
after hitting record highs in two consecutive sessions, as the
ongoing unrest in the Middle East underpinned demand and
investors awaited clues from today's meeting on European Central
Bank monetary policy.
Escalating tensions in Libya, as well as other nations in
the Middle East and North Africa region remained in the
spotlight. For the latest stories, click
Spot gold was little changed at $1,433.60 an ounce by
0308 GMT, after striking a record high of $1,440.10 in the
previous session.
U.S. gold futures edged down 0.2 percent at
$1,434.20.
"Until the political turmoil in the Middle East is resolved,
gold prices will remain supported," said Ong Yi Ling, an analyst
at Phillip Futures.
Technical analysis is in line with market expectation on
further price rally. Spot gold may march towards $1,450 during
the day, based on its wave pattern and a Fibonacci projection
analysis, said Reuters market analyst Wang Tao.
Investors are watching an ECB policy meeting later on
Thursday, where the central bank is expected to step up
anti-inflation rhetoric and may phase out some of its crisis
support measures.
However, most economists had expected rate hikes not to
materialise until at least October.
"Should the ECB reinforces the expectations that it will
raise interest rates sooner or later, it could take some wind
off gold's rally," said Ong.
Gold's appeal could diminish if central banks start raising
interest rates, which would ease some inflationary concerns.
Higher interest rates would raise increase the opportunity cost
of holding gold.
China, which has raised interest rates twice in the past six
months and increased bank reserve requirement ratios eight times
since the start of 2010, will probably raise them again this
month, as the world's second-largest economy battles stubborn
inflation.
In the latest data from the United States, U.S. private
sector employers added more jobs than expected last month, while
the Federal Reserve said economic activity slowly improved in
the beginning of the year.
Oil strengthened on Thursday on worries about prolonged
supply disruption.
Spot silver edged lower at $34.61 after hitting a
31-year high at $34.96 an ounce on Wednesday.
Precious metals prices 0308 GMT
Metal Last Change Pct chg YTD pct chg Volume
Spot Gold 1433.60 -0.89 -0.06 1.00
Spot Silver 34.61 -0.06 -0.17 12.15
Spot Platinum 1844.99 -0.75 -0.04 4.38
Spot Palladium 817.97 1.25 +0.15 2.31
TOCOM Gold 3781.00 5.00 +0.13 1.39 41071
TOCOM Platinum 4922.00 26.00 +0.53 4.81 12993
TOCOM Silver 90.60 0.00 +0.00 11.85 881
TOCOM Palladium 2170.00 20.00 +0.93 3.48 321
COMEX GOLD APR1 1434.20 -3.50 -0.24 0.90 3877
COMEX SILVER MAY1 34.63 -0.20 -0.59 11.93 1299
Euro/Dollar 1.3859
Dollar/Yen 81.79
TOCOM prices in yen per gram. Spot prices in $ per ounce.
COMEX gold and silver contracts show the most active months
(Editing by Ed Lane)
Reuters
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