Libya

Gold held on a steady level on firmer equities and the situation in Libya, while worries that some central banks will have to soon start tightening monetary policy may have some impact on the bullion.

In recent days, several top U.S. central bank officials have said further bond purchases by the Federal Reserve were not needed to support the economy, while European Central Bank President Jean-Claude Trichet noted his inflation concerns from rising food and energy prices.

Gold stayed firm during Tuesday trades supported by the weakness in the US dollar and by investor demand for safe-haven assets as ongoing Western air strikes on Libya stoked tensions in the Middle East.

Investors also kept an eye on Japan's progress in averting a full-blown nuclear disaster, caused by an earthquake and tsunami on March 11 that is believed to have killed over 20,000 in the world's third-largest economy.

Gold prices rose on Thursday on investors’ expectations to see if the international community would agree to a "no-fly" zone for Libya, while holdings in the world's largest silver exchange-traded fund struck a record high, reflecting greater interest in the cheaper precious metal.

Bullion traders remain focused on mounting unrest across the Arab world and renewed concern about euro zone debt -- factors that sent prices to an all-time high above $1,440 this week. Platinum and palladium were firmer but falling equities were likely to weigh on sentiment.

Bullion declined over half a percent losing its gains from the previous session's record high above $1,440 an ounce, on a peace plan for Libya proposed by OPEC-member Venezuela to end violent unrest in the country.

Arab League Secretary General Amr Moussa said on Thursday that the a plan to bring peace to proposed by Venezuelan leader Hugo Chavez was "under consideration."

Gold prices increased on Tuesday on escalating unrest in Libya and the Middle East while holdings in the biggest gold-backed exchange-traded fund fell to the lowest level in more than nine months.

Forces loyal to Libyan leader Muammar Gaddafi were massed near the Tunisian border on Tuesday, as the United States said it was moving warships and aircraft closer to Libya, heightening tension in the volatile region.