Gold Fluctuates as Libya Conflict, Weaker Dollar Stoke Investment Demand

Gold fluctuated in New York as the riots in Libya and the Middle East and a weaker dollar boosted demand for an alternative investment.
Allied forces are expanding their air campaign on Libya in an attempt to frustrate fighters Muammar Gaddafi, while the president of Yemen, Ali Abdullah Saleh, said general defect are at risk of dragging the country into a "bloody civil war." radiation leak in the Sea of Japan nuclear plant halted as the operator moves power closer to the restoration of critical cooling pumps. Gold reached a record $ 1445.70 an ounce on 07 March.
"The precious metals continue to benefit from uncertainty about the situation in Libya," said Marc land, an analyst at Standard Bank Plc in Johannesburg, in a report. "A weaker dollar is also providing support. Any strong evidence that Japan's nuclear crisis may be coming to an end I could see the safe-haven demand out a little. "
Gold futures for April delivery fell $ 1, or 0.1 percent, to $ 1,425. 40 an ounce at 8:02 am on the Comex in New York. Prices today gained as much as 0.4 percent and declined to 0.2 percent. The metal for immediate delivery in London was 0.1 percent, to $ 1,425.80.
Bullion fell to $ 1,425.50 an ounce in the morning "fix" in London, used by some mining companies to sell production, from $ 1,432 in yesterday afternoon fixing. Gold typically moves inversely to the dollar today fell to its lowest level in more than two years against six major currencies.
Air raids
Air strikes allowed Libyan forces to push rebels out of their stronghold east of Benghazi as France, Britain and allies like Turkey and Arab states struggle to agree on whether the Organization of the North Atlantic Treaty should guide operation.
Saleh said Yemen is ready to quit this year if the lifting of diseases and elections are held. The internal revolt against the president brought new defections, with the ambassadors of Egypt and the Arab League, becoming the latest to join the diplomatic protest movement, Al Arabiya television reported.
Gold may have "the support offered by Middle East tensions," said Tom Pawlicki, an analyst in Chicago at MF Global Holdings Ltd. (MF), in a report today. "The proximity to Yemen to Saudi Arabia and the Gulf of Aden could be important in promoting the geopolitical risk premium."
Five types of radioactive material released from damaged fuel rods at the plant in Fukushima Dai-Ichi were detected in the sea, Tokyo Electric Power Co., said on its website. The company expects to restore power to buildings housing the reactors first four floor later today. The plant was damaged after the strongest earthquake recorded in the country and the subsequent tsunami on 11 March.
Silver for May delivery in New York fell 0.2 percent to $ 35.94 an ounce. It rose to $ 36,745 on March 7, the highest since March 1980, which reached a record future $ 50.35.
Palladium for June delivery fell 0.9 percent to $ 735.75 an ounce. Platinum for April delivery fell 0.4 percent to $ 1738.30 an ounce.