* Gold to correct to $1,360-technical
* Coming Up: U.S. Retail Sales Feb; 1330 GMT
(Updates prices, adds quotes)
By Lewa Pardomuan
SINGAPORE, March 11 (Reuters) - Gold ticked up on Friday after reports of
police firing on protesters in Saudi Arabia ignited fears of further Middle East
unrest, but bullion was on track for its biggest weekly decline since late
January, down more than $20 from a lifetime high hit at the start of the week.
Saudi police fired in the air to disperse protesting Shi'ites and three
people were injured on the eve of a day of protests called for Friday by
activists using the Internet, while protests were planned in other Gulf
countries such as Yemen, Kuwait and Bahrain.
The time after Friday prayers has proved to be crucial in popular uprisings
in North Africa and the Middle East which have brought down Tunisian and
Egyptian rulers who once seemed invulnerable.
Gold added $3.30 to $1,415.89 by 0309 GMT, but a surging U.S. dollar
was likely to cap gains. Gold hit a record of $1,444.40 on Monday, when
investors poured money into bullion as oil jumped on violence in Libya and after
the downgrade of Greece's credit rating reignited worries about euro zone
sovereign debt.
"We are waiting for some escalation in the situation within Saudi. If
protesters become more aggressive in some way, you might find see more buying
but again, it's being pressured on one side by the dollar," said Darren
Heathcote, head of trading at Investec Australia in Sydney.
"On the one side, we've got, probably, downward pressure as a result of a
stronger dollar and a bit of flight to safety going on. On the other hand,
gold's attractiveness as a safe haven would probably increase, given the
uncertainties surrounding Middle East and particularly what's going on in
Saudi."
U.S. gold futures for April rose $3.9 to $1,416.4 an ounce. The
contract hit record at $1,445.70 on Monday.
Spot gold will fall more next week to a range of $1,360 to $1,376 per
ounce based on its wave pattern and a Fibonacci retracement analysis, according
to Wang Tao, who is a Reuters market analyst for commodities and energy
technicals.
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TAKE A LOOK-Unrest in N. Africa, Mideast
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China's February inflation data, which offered tentative signs the government
is succeeding in tamping price pressures, helped boost gold on Friday. Soaring
inflation in China had sparked worries it could cut the country's demand for
commodities, including gold.
Further monetary tightening to tamp inflation in China however remains a
possibility.
"I think we are still expecting robust demand from China. But I think the
Chinese buying is more on a longer-term basis, so I guess the situation in Saudi
Arabia is still a major factor supporting gold," said a dealer in Singapore.
"There's quite a lot fluidity regarding the situation there. I think there's
a potential for some headline risks."
Silver was steady at $35.31 an ounce, having rallied to a 31-year
peak above $36 on Monday to track rally in gold and also due to a growing
interest in the metal as an alternative investment. Holdings on iShares Silver
Trust were unchanged at a record high at 10,974.06 tonnes.
"We have raised our silver price profile significantly, by 16 percent
to$35.50 an ounce in 2011 and 18 percent to $36.25 an ounce in 2012," said BNP
Paribas in a report. "We expect investment demand to remain strong throughout
the year and the gold/silver ratio to stay in the low 40s."
The euro stayed on the backfoot early in Asia on Friday after having
suffered its biggest one-day fall against the dollar in a month, and further
losses may loom if a euro zone summit fails to soothe market nerves on sovereign
debt.
In the energy market, oil was steady near $103 on Friday after its biggest
one-day loss in a month, with investors watching for developments in Saudi
Arabia after police clashed with protesters ahead of a planned "Day of Rage"
against the monarchy.
Precious metals prices 0309 GMT
Metal Last Change Pct chg YTD pct chg Turnover
Spot Gold 1415.89 3.30 +0.23 -0.25
Spot Silver 35.31 0.06 +0.17 14.42
Spot Platinum 1767.74 7.50 +0.43 0.01
Spot Palladium 768.47 2.97 +0.39 -3.88
TOCOM Gold 3782.00 -37.00 -0.97 1.42 41560
TOCOM Platinum 4780.00 -92.00 -1.89 1.79 18123
TOCOM Silver 93.60 -1.90 -1.99 15.56 1393
TOCOM Palladium 2064.00 -20.00 -0.96 -1.57 500
Euro/Dollar 1.3823
Dollar/Yen 82.80
TOCOM prices in yen per gram. Spot prices in $ per ounce.
(Reporting by Lewa Pardomuan; Editing by Ed Lane)
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