* Concerns about rising prices support gold
* U.S. housing data eyed for clues on sector's stability
* Holdings of SPDR gold ETF <XAUEXT-NYS-TT> unchanged
(Updates prices)
By Chikako Mogi
TOKYO, May 18 (Reuters) - Gold held near a six-week high on
Monday as fears of rising prices kept up the metal's allure as
a hedge against inflation, though investment in gold-backed
exchange-traded funds halted after a recent gain.
Gold <XAU=> inched up 0.1 percent to $931.40 per ounce at
0657 GMT, compared with New York's notional close of $930.70.
On Friday, bullion climbed to $933.65, its highest level in
six weeks after data showed U.S. core inflation in April rose
more than expected.
U.S. gold futures for June delivery <GCM9> were at $932.2
per ounce, up 0.1 percent from Friday's settlement of $931.30
on the COMEX division of the New York Mercantile Exchange.
"Gold is inching up a bit because of inflation worries, of
(governments) printing money, with investors switching to
gold," said Ronald Leung, director of Lee Cheong Gold Dealers
in Hong Kong.
"The market is quiet and expected to stay so as players
wait for the housing data to see if stability is returning, and
how stock markets react," he said.
The U.S. National Association of Home Builders releases its
May housing market index at 1700 GMT.
U.S. economic data on Friday offered some evidence that the
recession's worst phase may be over, with April consumer price
unchanged and industrial output declining at a slower pace than
in March. []
While the headline inflation figure was flat, and
economists widely expect negative readings later this year,
core prices, which exclude food and energy items, rose 0.3
percent after gaining 0.2 percent in March.
The Federal Reserve has pumped more than $1 trillion into
the economy to prevent its downward spiral.
While the dollar has recovered against a basket of
currencies, the U.S. currency's recent weakness has maintained
support for bullion, Leung said.
Gold often moves in the opposite direction to the dollar. A
fall in the dollar makes it less expensive for holders of other
currencies to buy the metal.
The dollar and yen rose on Monday as worries persisted
about global economic prospects, triggering stock losses and
prompting investors to seek shelter in the yen in particular.
[]
Investors were not in a hurry to invest more money into
gold, keeping holdings at the world's largest gold-backed
exchange-traded fund, SPDR Gold Trust <GLD>, unchanged at
1,105.62 tonnes as of May 15. []
Platinum rose 0.4 percent to $1,105.00 <XPT=> an ounce from
$1,100.50 from Friday. The annual platinum week gathering in
London begins on Monday with the launch of refiner Johnson
Matthey's platinum report.
Palladium <XPD=> also edged up to $224.00 from Friday's
$222.50.
Precious metals prices at 0702 GMT
Metal Last Change Pct chg YTD pct chg
Turnover
Spot Gold 931.90 1.20 +0.13 11.91
Spot Silver 13.99 0.06 +0.43 -5.28
Spot Platinum 1107.50 7.00 +0.64 -27.14
Spot Palladium 224.00 1.50 +0.67 -39.13
TOCOM Gold 2860.00 -4.00 -0.14 -6.54
24598
TOCOM Platinum 3410.00 -64.00 -1.84 -36.13
13949
TOCOM Silver 426.50 -3.80 -0.88 -21.16
224
TOCOM Palladium 699.00 -8.00 -1.13 -48.26
263
Euro/Dollar 1.3458
Dollar/Yen 94.94
TOCOM prices in yen per gram, except TOCOM silver which is
priced in yen per 10 grams. Spot prices in $ per ounce.
(Additional reporting by Risa Maeda; Editing by Ben Tan)
