* Unrest in Yemen, Oman, Libya fuels safe-haven buying
* Middle East, North Africa tensions support oil, hit dollar
* Silver prices set for 19 pct rise in February
(Updates prices)
By Jan Harvey
LONDON, Feb 28 (Reuters) - Gold rose above $1,410 an ounce
on Monday as turmoil across the Middle East boosted safe-haven
buying, though the metal struggled to sustain gains as investors
were spooked by its proximity to record highs.
Spot gold <XAU=> was bid at $1,413.70 an ounce at 1607 GMT,
against $1,409.15 late in New York on Friday. U.S. gold futures
for April delivery <GCJ1> rose by $4.80 an ounce to $1,414.10.
Unrest across the Middle East and North Africa, which
unseated leaders in Tunisia and Egypt before spreading across
Libya, Bahrain, Yemen and Oman among others has fuelled a 6
percent rise in gold prices this month.
Prices are currently on track for their biggest one-month
rise since last August, but analysts say more may be needed to
take gold above its record high at $1,430.95 an ounce.
"It requires some spreading of the political turmoil and an
intensification in those other countries to see gold make much
bigger gains," said Mitsubishi analyst Matthew Turner.
"From a market viewpoint, gold is near its highs again. It
was probably quite easy to get up to $1,400, but it will be more
difficult to rise from here."
Yemen's opposition coalition said on Monday it would not
join a unity government expected to be offered by President Ali
Abdullah Saleh, saying it was standing with popular demands for
an end to his three-decade rule. []
In Oman, protesters demanding jobs and political reforms
blocked roads to a main port in the north of the Gulf Arab
sultanate as looters trashed a nearby supermarket, and
demonstrations spread to the capital. []
Meanwhile foreign powers accelerated efforts to help oust
Libyan leader Muammar Gaddafi as rebels fought government forces
trying to take back strategic coastal cities on either side of
the capital Tripoli. []
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DOLLAR UNDER PRESSURE
A decline in the dollar, which makes commodities priced in
the U.S. unit cheaper for holders of other currencies, also
helped support gold prices.
The dollar hit a 3-1/2-month low versus a currency basket
<.DXY> on speculation the Federal Reserve would lag other
central banks in raising interest rates to counter inflation
risks stoked by rallying oil prices. []
Oil prices steadied on Monday but remained elevated after
hitting 2-1/2 year highs last week on the back of tensions
across the Middle East and North Africa. []
"Higher oil prices are a double-edged sword as far as gold
is concerned," said UBS in a note. "On the plus side, should
elevated oil prices persist, concerns about a corresponding
negative impact on global economic growth could spurn renewed
interest in safe havens.
"(But) rising oil prices also contribute to higher inflation
prints. This creates a difficult task for policymakers,
particularly the ECB and BoE, who are debating a return to
monetary policy normalisation. The return of interest rate hikes
will act as an anchor for gold at lower price levels."
Among other precious metals, silver <XAG=> was bid at $33.82
an ounce against $33.31. Prices have rallied 21 percent this
month, their biggest one-month rise since May 2009.
Among other precious metals, platinum <XPT=> was at
$1,803.24 an ounce against $1,803.50, while palladium <XPD=> was
at $794.72 against $785.40.
(Reporting by Jan Harvey; Editing by Jane Baird and Alison
Birrane)
