* Gold steadies, off intraday high
* Coming Up: EZ Economic sentiment Mar 2011; 0900 GMT
(Updates prices, adds quotes)
By Lewa Pardomuan
SINGAPORE, March 30 (Reuters) - Gold steadied on Wednesday on firmer
equities and upheaval in Libya, although further gains could be capped by
worries that some central banks will have to soon start tightening monetary
policy, a move that would dent bullion's appeal as a hedge against inflation.
In recent days, several top U.S. central bank officials have said further
bond purchases by the Federal Reserve were not needed to support the economy,
while European Central Bank President Jean-Claude Trichet noted his inflation
concerns from rising food and energy prices. []
But an uprising in the Arab world remained a key supporting factor for gold,
as a conference of 40 governments and international bodies agreed to press on
with a NATO-led aerial bombardment of Libyan forces until Muammar Gaddafi
complied with a U.N. resolution to end violence against civilians.
Spot gold hardly moved, standing at $1,416.10 an ounce by 0233 GMT
after hitting an intraday high of $1,419.50 -- still well below a lifetime high
around $1,447 struck last week. It had dropped 0.1 percent on Tuesday as the
talk of monetary tightening prompted selling.
"You've got to ask yourself, how bad is inflation? I think, really, you've
got to get the economy moving before anything happens," said Jonathan Barratt,
managing director of Commodity Broking Services in Melbourne.
"I think the market itself will probably get a little bit headstrong if, in
fact, we continue to get concerns in the Middle East. I think gold is really
being played out by what's happening in the Middle East and risk aversion
trade."
Muammar Gaddafi's better armed and organised troops reversed the rapid
westward advance of rebels on Tuesday as world powers meeting in London piled
pressure on the Libyan leader to step down. []
In Syria, President Bashar al-Assad sought to deflect the greatest challenge
to his 11-year rule by mobilising tens of thousands of Syrians in mass rallies
across the country, while in Yemen, protesters demanded an end to President Ali
Abdullah Saleh's rule. [] []
U.S. gold futures for April was barely moved at $1,416.0 an ounce.
Japan's Nikkei average made modest gains on Wednesday after the dollar rose
against the yen, but remained tethered in a narrow range for a seventh straight
session amid little progress at the crippled nuclear plant.
"There's a bit of physical buying but we've also seen some selling on the
upside. The Middle East is a tense, but people also think interest rates will go
up in the euro zone, which is why the market is capped," said a dealer in Hong
Kong.
"It's a mixed market. We may see support at $1,410, while the upside is
capped at $1,420 and $1,422. We may trade within this range for the rest of the
week. Speculators don't seem to know what to do."
Holdings on the world's largest gold-backed exchange-traded fund, SPDR Gold
Trust , were unchanged at 1,211.836 tonnes.
In currencies, the yen wallowed at 10-month lows versus the euro and near a
three-week trough on the dollar on Wednesday, having suffered broad losses
after several major chart support levels were breached.
Against the dollar, the euro held near $1.4100 , finding the going
tough after a crack at levels above $1.42 last week was met with selling
interest
Gold demand to make jewellery, dental fillings and in electronics will jump
by more than 5 percent this year, the biggest rise since 2000, metals research
and consultant CPM Group said on Tuesday. []
Precious metals prices 0233 GMT
Metal Last Change Pct chg YTD pct chg Turnover
Spot Gold 1416.10 0.15 +0.01 -0.24
Spot Silver 36.90 -0.17 -0.46 19.57
Spot Platinum 1744.49 10.04 +0.58 -1.30
Spot Palladium 753.97 5.69 +0.76 -5.69
TOCOM Gold 3775.00 37.00 +0.99 1.23 37562
TOCOM Platinum 4670.00 64.00 +1.39 -0.55 11420
TOCOM Silver 98.20 1.30 +1.34 21.23 1302
TOCOM Palladium 2014.00 58.00 +2.97 -3.96 209
Euro/Dollar 1.4079
Dollar/Yen 82.73
TOCOM prices in yen per gram. Spot prices in $ per ounce.
(Reporting by Lewa Pardomuan; Editing by Clarence Fernandez)
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