* Gold still targets $1,423.57/oz -technical
* Coming Up: U.S. consumer confidence Feb; 1500 GMT
(Updates prices)
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 lost strength after a rally 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 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.
Physical dealers noted selling from Thailand and other
holders in Asia after gold prices rose in the last six sessions,
but there was also safe haven buying at lower levels.
"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 $4.75 an ounce to $1,401.20 by 0656
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.
Diplomats at Libya's mission to the United Nations sided on
Monday with the revolt against their country's leader and called
on the Libyan army to help overthrow "the tyrant Muammar
Gaddafi."
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 hopes of a sustainable recovery in the global economy,
but a drop in gold prices prompted some speculators to book
profits.
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, according 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 low 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."
U.S. crude futures hit a 2-1/2 year high on Tuesday on
concern that violence in Libya could cut more of the
OPEC-member's output and that a similar story could play out in
other top oil producers in North Africa and the Middle East.
In other markets, the dollar firmed 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 0656 GMT
Metal Last Change Pct chg YTD pct chg Turnover
Spot Gold 1401.20 -4.75 -0.34 -1.29
Spot Silver 33.39 -0.46 -1.36 8.20
Spot Platinum 1834.75 -11.70 -0.63 3.80
Spot Palladium 848.73 -5.15 -0.60 6.16
TOCOM Gold 3758.00 18.00 +0.48 0.78 74941
TOCOM Platinum 4961.00 -19.00 -0.38 5.64 12404
TOCOM Silver 87.80 0.10 +0.11 8.40 3580
TOCOM Palladium 2283.00 -10.00 -0.44 8.87 658
Euro/Dollar 1.3591
Dollar/Yen 83.23
TOCOM prices in yen per gram. Spot prices in $ per ounce.
(Reporting by Lewa Pardomuan)
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