* High prices trigger scrap selling in Asia
* Spot gold targeting $1,423.57 -technicals
* Coming up: U.S. unemployment claims; 1330 GMT
(Updates prices)
By Rujun Shen
SINGAPORE, Feb 24(Reuters) - Spot gold prices held steady
just below a seven-week high on Thursday, as violence in Libya
continued to buoy safe-haven demand in bullion and high oil
prices, which have triggered inflation fears, also lent support.
As many as 1,000 people may have been killed in the unrest.
On Wednesday, thousands celebrated as the east broke free of the
control of Mummar Gaddafi, who has vowed to crush the revolt.
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"People don't have much confidence that the Libya crisis
will be settled any time soon, so a lot of them are betting on
gold," said a dealer in Singapore, "Gold will be king."
Crude oil prices hit a 2-1/2-year high on mounting fears
that unrest in Libya could spread to other major Middle East
producers, including top exporter Saudi Arabia.
Soaring oil prices raised concerns of higher inflation and
slower economic growth globally, which might also lead to some
gold buying.
Spot gold edged down 0.2 percent at $1,408.96 an
ounce by 0634 GMT, off the seven-week high of $1,416.30 hit in
the previous session.
U.S. gold futures inched down 0.3 percent at $1,410.
Spot gold will test the Jan. 3 high at $1,423.57 per
ounce, based on its wave pattern and a Fibonacci projection
analysis, said Reuters market analyst Wang Tao.
For a 24-hrs gold technical outlook:
http://graphics.thomsonreuters.com/WT/20112402090541.jpg
"There is no reason why we can't break through the recent
high around $1,416 and head towards $1,420 if the unrest
continues in Libya," said Darren Heathcote, head of trading at
Investec Australia.
"Of course if it spreads even further in field or becomes
more violent, gold will benefit further as a safe haven."
Scrap sellers have taken advantage of current high price
levels to cash in, while fresh buying was limited, dealers said.
Spot gold rose in seven out of past nine sessions, up nearly
eight percent since it hit a four-month low of $1,308 on Jan 28.
"Prices are getting more dear, and some may take the
opportunity to sell then wait for the next dip to buy again,"
said the Singapore-based dealer.
Spot silver inched up 0.1 percent at $33.54.
Holdings in the world's largest silver-backed
exchange-traded fund, iShares Silver Trust , rose to
one-month high of 10,575.23 tonnes by Feb 23.
Silver prices are expected to stay at three-decade highs
even as new mine output of silver is forecast to rise eight
percent on the year, keeping up with growing demand, metals
consultancy GFMS said.
Spot palladium reversed early gains to inch down 0.3
percent at $774.47, headed for a third consecutive session of
loss. It hit a six-week low of $762.85 in the previous session.
Precious metals prices 0634 GMT
Metal Last Change Pct chg YTD pct chg Volume
Spot Gold 1408.96 -2.56 -0.18 -0.74
Spot Silver 33.54 0.03 +0.09 8.68
Spot Platinum 1778.50 -3.00 -0.17 0.62
Spot Palladium 774.47 -2.03 -0.26 -3.13
COMEX GOLD APR1 1410.00 -4.00 -0.28 -0.80 11802
COMEX SILVER MAR1 33.53 0.23 +0.70 8.37 5001
Euro/Dollar 1.3760
COMEX gold and silver contracts show the most active months
(Editing by Clarence Fernandez)
Reuters
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