Can a restored iphone with the sim card taken out be traced?

About 2 months ago i found an iPhone and it has been sitting in my room for ages, the owners had blocked the sim card so i took it out, it also had a passcode on it so i couldn't access it. I restored the phone and it is now up and running with nothing on it (restored).so my question is…

Can the phone be traced? It has no signal because it has no sim card, however it is connected to my Wi-Fi and i have been connecting it to my itunes. I have turned off all locational services just to be safe. I would not use the phone so i may sell it or wait until my contract runs out (January 2013).
Just wondering if it is safe to use without it being traced.

Nope… I've had heeps of iphones with new Sims

Anything can ALWAYS be traced.
but you would Really! Have to try with good equipment to track that

No they can't until u put a sim card in it