Can I gift games from my library?

I understand that once a game is in the library it cannot be removed, only hidden. My question is, can I gift an uninstalled copy of a game to a friend? I understand that this may be impossible due to legal issues, and that once a game is in the library it stays.

Solution 1:

From the information on the Steam Support Knowledge Base under Steam Gifts they have this question:

Can I gift games I no longer play to my friends?

You can not gift games that were previously purchased on your Steam account to friends.

Even though the question is about previously played games, the answer seems to indicate any games that were purchased for your account.

Solution 2:

No, you cannot gift an uninstalled game.