Gold rises for the second day, eyes on US jobs report

Gold surged for the second consecutive session, girding for 10th straight quarterly advance, as the unrest in Middle East and North Africa and spread of radiation leaks in Japan boosted demand on bullions.

This week, Muammar Qaddafi's loyalties reversed their earlier withdrawal against rebels after the strong air strikes led by NATO forces helped revolts to advance.

Therefore, concerns are renewed once again in Libya after hopes increased earlier this week that rebels will win the war against Qaddafi.

Accordingly, oil rose today to trade at $104.85 a barrel compared with yesterday's closing of $104.39.

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 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.

On the other hand, the latest announcements by some Fed officials showed the possibility of cutting the second-round stimulus after the improvement seen recently in the US economy.

Eyes will be on non-farm payrolls report after ADP employment revealed that the private sector added 201,000 jobs in March from the revised 208,000 in February.

In addition, expectations that both ECB and BoE may raise borrowing cost next week to halt inflation are putting downside pressure on gold prices as the metal losses its merit as inflation hedge asset.

In the FOREX market, the US dollar fell today against a basket of major currencies to trade at 75.92 compared with yesterday's closing at 76.13, according to the dollar index gauge.

Among other precious metals, platinum slipped to $1772.00 from the day's opening of $1777.20, palladium inched down to $755.00 from $755.70 and silver edged was little changed to trade around 37.66, as of 07:40 GMT.