Gold advances on unrest in the MENA region

Gold inches up on Wednesday trading as the unrest in Middle East and North Africa and the spread of Japanese radiationsare still giving a boost to bullions as safe haven asset.

Gold prices ticked up to trade at $1421.21 after recording a high of $1421.66 and a low of $1414.30.

The previous session, gold shed $2.20 or 0.15% after closing at $1418.25, while gold price was setin London at $1417.50 per ounce inclining from $1414.00 during the AM fixing.

In Libya, Muammar Qaddafi's loyalties reversed their withdrawal to advance to places dominated by rebels while world leaders meet in London to put pressure on Qaddafi to step down.

While the victory seemed to be close to revolts after the strong air strikes launched by NATO forces on Libyan ground forces, Qaddafi showed that his army is well organized.

The jittery situation is in the MENA is still predominant in a number of countries in the region which helped oil to rebound yesterday and show slight advance today to trade around $104.60 a barrel.

In Japan, the harsh situation seems to continue after the increase in radioactive iodine levels in seawater which prompted Japan to upgrade safety standards to avoid experiencing such disaster once again.

But, on the other hand, the latest announcements by some US officials that policy makers may cut the second-round stimulus after the improvement seen recently in the US economy and expectations that both ECB and BoE may raise borrowing cost next week to halt inflation are putting downside pressure on gold prices as the shiny metal losses demand as inflation hedge asset.

In the FOREX market, the US dollar rebounded today against a basket of major currencies to trade at 76.30 compared with yesterday's closing at 76.14, according to the dollar index gauge.

Among other precious metals, platinum soared to $1749.50 from the day's opening of $1746.50, palladium surged to $754.50 from $753.30 and silver edged up to $37.35 from $37.00, as of 07:40 GMT.