On Wednesday, Gold regained strength with bargain hunters resurfacing after prices dropped from a seven-week high, but receding equity markets and a fall in ETF holdings could restrict gains in spite of the prospect of safe- haven buying prompted by escalating tension in the Middle East and North Africa.

An insolent Muammar Gaddafi stated that he won’t mind to die like a martyr in Libya. He promised to crush a surging revolt which has seen eastern regions coming out of his forty one year rule and brought deadly turbulence to the capital.

Spot gold traded steadily at one thousand three hundred ninety nine dollars and sixty six cents per ounce by 0341 GMT after going down to one thousand three hundred ninety five dollars and twenty cents per ounce and going up to one thousand four hundred one dollars and nine cents.

Bullion had gone up to hit 7-week high around one thousand four hundred and ten dollars on Tuesday before slipping, partly for drop in equities which prompted investors to sell gold for making up for the losses.

The SPDR Gold Trust, which is the largest gold-backed exchange-traded fund in the world, stated that holdings declined to 1,218.243 tonnes by Feb. 22, their lowest seen in nine months, from 1,223.098 tonnes by Feb. 20.

There can still be seen bargain hunting at the lower end. These Middle East disturbances won’t get solved in a short time with so many countries involved, stated Ronald Leung, director of Lee Cheong Gold Dealers in Hong Kong.

There were protests in Libya's neighboring countries like Egypt and Tunisia that toppled well-established leaders, but Gaddafi stated he would not be ousted by the mutiny sweeping through his oil-producing nation.