* Gold still targets $1,423.57/oz -technical
* Coming Up: U.S. consumer confidence Feb; 1500 GMT
(Updates prices, adds quotes)
By Lewa Pardomuan
SINGAPORE, Feb 22 (Reuters) - Gold slipped on Tuesday after rising to its
highest in seven weeks, but sentiment was still underpinned by deadly unrest in
North Africa and the Middle East as well as uncertainty over the future of oil
prices, while silver jumped to its strongest level since 1980.
High oil prices sparked by violence in Libya fed fears of inflation, one of
the main concerns of investors, who are otherwise in a generally bullish mood on
expectations that the global economic recovery is now sustainable. Libyan leader
Muammar Gaddafi appeared on state television signalling his defiance and saying
he had not fled a revolt against his 41-year rule.
"I think the current situation there is really akin to a keg of dynamite,"
said Ong Yin Ling, investment analyst at Phillip Futures in Singapore.
"Whether Gaddafi will be toppled or whether we will witness a revolution, I
think the final outcome is still uncertain. But the situation is likely to get
worse before it gets better. Going forward (gold) could still remain supported
due to the crisis, which is unlikely to be resolved anytime soon."
Spot gold fell $4.05 an ounce to $1,401.90 by 0308 GMT. It had risen
as high as $1,410.65 an ounce as protests that have unseated leaders in Egypt
and Tunisia spread to neighbouring states, including Libya.
Bullion was below a lifetime high around $1,430 struck in December.
Libyan forces loyal to Gaddafi have fought an increasingly bloody battle to
keep the veteran leader in power with residents reporting gunfire in parts of
the capital Tripoli and one political activist saying warplanes had bombed the
city.
A bullish target at $1,423.57 per ounce for spot gold remains intact,
as its long-term bull trend could have resumed, according to Wang Tao, a Reuters
market analyst for commodities and energy technicals.
For a 24-hrs gold technical outlook: http://graphics.thomsonreuters.com/WT/20112202090242.jpg
U.S. gold futures for April rose $13.7 to $1,402.3 an ounce.
Silver jumped to its highest since 1980 above $34 an ounce on high
gold prices and also on hopes of a sustainable recovery in the global economy.
Spot silver is seen as making a limited gain to $38.20 per ounce over
the next four weeks, as pointed out by a trendline, because the current wave (5)
is unlikely to extend, after the wave (3) has travelled a much longer distance
as part of a five-wave cycle that started from the Feb. 2010 low at $14.63,
acccording to Wang Tao.
For a graphic, click:
http://graphics.thomsonreuters.com/WT/20112202103216.jpg
The gold-silver ratio, used to measure how many ounces of silver can buy one
ounce of gold, fell to a 13-year high around 41. Forward silver was cheaper than
cash prices, indicating tightness.
"Silver is moving so fast. That's scary. But with the unrest and tension in
the Middle East and rising oil prices, I reckon it will stay firm," said a
dealer in Singapore.
"Physical silver is definitely one of the reasons why the price is high. I
think the silver backwardation has caused the push too."
Brent crude oil futures rose by more than $2 to as much as $108.18 per
barrel from the previous close on continued fears that violence in Libya could
lead to wider disruptions in supply from the OPEC country.
In other markets, the dollar edged up against a basket of major currencies,
while the Nikkei fell for the first time in seven days, moving away from its
highest levels in over nine months, as the Middle East turmoil triggered
profit-taking in overbought blue-chip shares.
Precious metals prices 0308 GMT
Metal Last Change
Pct chg YTD pct chg
Turnover
Spot Gold 1401.90 -4.05
-0.29 -1.24
Spot Silver 33.34 -0.51
-1.51 8.04
Spot Platinum 1841.74
-4.71 -0.26 4.20
Spot Palladium 852.50
-1.38 -0.16 6.63
TOCOM Gold 3764.00 24.00
+0.64 0.94 55223
TOCOM Platinum 4988.00
8.00 +0.16 6.22 8263
TOCOM Silver 88.30 0.60
+0.68 9.01 2718
TOCOM Palladium 2296.00
3.00 +0.13 9.49 558
Euro/Dollar 1.3588
Dollar/Yen 83.28
TOCOM prices in yen per gram. Spot prices in
$ per ounce.
(Reporting by Lewa Pardomuan; Editing by)
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