* Spot silver poised for best month since May 2009
* Spot gold to break above $1,423.57 - technicals
* Coming up: Euro zone inflation; 1000 GMT
(Adds detail, comments; updates prices)
By Rujun Shen
SINGAPORE, Feb 28 (Reuters) - Spot gold inched up on Monday,
heading for its best month since last August, boosted by fears
over the deteriorating situation in Libya and spreading violence
in the region, supported by rising oil prices.
In Libya, armed rebels who have seized control of Zawiyah,
close to the capital Tripoli, were preparing for a counterattack
as leader Muammar Gaddafi vowed to cling on to his 41-year-old
rule. For stories on the unrest in Libya, Middle East and North
Africa, click:
Crude oil prices jumped on fear of supply disruption in the
region.
Political turmoil in the region has been supportive of gold
prices in recent weeks. Gold was poised to stage a monthly gain
of 6 percent, its best since last August.
"The sentiment is still generally bullish," said a
Singapore-based dealer, "If oil keeps going up, people will
continue to bet on gold, as a hedge against inflation and
against risks caused by the unrest in the Middle East."
Spot gold inched up 0.3 percent to $1,412.75 an ounce
by 0310 GMT, extending gains from the previous session.
The most active U.S. gold futures contract also edged
up 0.3 percent to $1,413.60.
Spot gold is poised to break a resistance at $1,423.57, a
high touched on Jan. 3, based on its wave pattern and a channel
technique, said Reuters market analyst Wang Tao.
For a 24-hrs gold technical outlook:
http://graphics.thomsonreuters.com/WT/20112802082922.jpg
Gold rose 1.5 percent last week, compared to a 14 percent
jump in U.S. crude oil.
"We haven't seen increasing volatility in gold as we see in
the oil market," said Yingxi Yu, an analyst at Barclays Capital.
"It does seem like momentum in gold is not as strong. This time
around, even when things are bad, gold hasn't been such a
popular investment, because things are looking brighter in the
global economy."
Economists have revised growth forecasts, and the tightening
cycle is already under way in emerging economies, which is
likely to diminish gold's appeal as a hedge against an uncertain
economic environment.
The latest data showed Japanese factory output rose in
January for a third straight month and manufacturers expect
further gains in coming months, a sign that the economy is on
track for a moderate export-driven recovery.
The physical market has remained calm, with Thailand and
Indonesia selling scrap and some investors buying gold, the
Singapore-based dealer said.
A weekly report of the U.S. Commodity Futures Trading
Commission showed that speculators had increased their net long
positions in gold by Feb 22, from a week earlier.
Spot silver gained 0.4 percent to $33.45 an ounce, on
course for its best month since May 2009, up 19 percent on the
month.
Precious metals prices 0310 GMT
Metal Last Change Pct chg YTD pct chg Volume
Spot Gold 1412.75 3.60 +0.26 -0.47
Spot Silver 33.45 0.14 +0.42 8.39
Spot Platinum 1811.99 8.49 +0.47 2.52
Spot Palladium 793.00 7.60 +0.97 -0.81
TOCOM Gold 3724.00 3.00 +0.08 -0.13 34298
TOCOM Platinum 4829.00 38.00 +0.79 2.83 10517
TOCOM Silver 87.40 2.00 +2.34 7.90 992
TOCOM Palladium 2101.00 29.00 +1.40 0.19 332
COMEX GOLD APR1 1413.60 4.30 +0.31 -0.55 6776
COMEX SILVER MAR1 33.45 0.55 +1.66 8.10 380
Euro/Dollar 1.3742
Dollar/Yen 81.68
TOCOM prices in yen per gram. Spot prices in $ per ounce.
COMEX gold and silver contracts show the most active month
s
(Editing by Clarence Fernandez)
Reuters
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