* Gold set for weekly gain of around 1 percent
* SPDR holdings <XAUEXT-NYS-TT> unchanged
* Broad commodity gains on risk appetite help bullion
By Chikako Mogi
TOKYO, July 24 (Reuters) - Gold prices inched up on Friday
but were off a six-week high hit the previous day, with investors
eyeing the dollar and stocks for direction as growing recovery
hopes fuel inflation concerns and boost bullion's appeal as a
hedge.
Gold may also benefit from broad strength in commodities as
investor risk appetite grows with the rally in equities markets.
Traders said activity was subdued but that they were looking
at stock markets, oil prices, the dollar and how overseas markets
develop later in the day to determine whether gold can advance
towards $960 levels, which they said was the near-term resistance
level.
"Risk appetite seems to have picked up quite a bit as seen in
rising stock markets," said Adrian Koh, an analyst at Phillip
Futures in Singapore.
"If we are looking at gold from a commodities point of view
(including oil), then an increase in risk appetite could also
support gold prices, as people would tend to buy riskier assets
such as commodities," he said.
But if investors view gold as a safe-haven, then a rise in
risk appetite would weigh on gold.
"But I guess the former is predominant for now," he said.
Spot gold <XAU=> edged up 0.2 percent to $948.80 per ounce as
of 0306 GMT, compared with New York's notional close of $947.15
per ounce on Thursday.
At current levels, gold is set for a weekly rise of a little
over 1 percent, after hitting a six-week high of $957.10 on
Thursday.
U.S. gold futures for August delivery <GCQ9> slipped 0.6
percent to $949.00 per ounce in thin volume, compared with
$954.80 an ounce on the COMEX division of the New York Mercantile
Exchange.
Gold futures ended above $950 an ounce on Thursday as U.S.
existing home sales rose for a third straight month in June and
prices hit their highest level since October, fuelling hopes that
the housing sector is finally recovering and will help improve
the broader economy.
The Nikkei average rose 1.5 percent, following a rally in
U.S. stocks which surged on Thursday, driving the Dow industrials
above the key 9,000 mark for the first time since January. []
Holdings at the world's largest gold-backed exchange-traded
fund, the SPDR Gold Trust <GLD>, were unchanged from the previous
business day at 1,086.61 tonnes. []
Holdings have declined 47.42 tonnes or 4.2 percent since
hitting a record of 1,134.03 tonnes on June 1.
For a graphic on SPDR holdings, click on:
http://graphics.thomsonreuters.com/gfx/JLeff_20092407114250.jpg
A new U.S. silver-backed exchange-traded fund rekindled
expectations that a similar U.S. platinum ETF -- if it clears
regulatory hurdles -- could boost precious metals prices across
the board.
Precious metals prices at 0310 GMT
Metal Last Change Pct chg YTD pct chg Turnover
Spot Gold 948.75 1.60 +0.17 7.79
Spot Silver 13.66 -0.04 -0.29 20.67
Spot Platinum 1167.50 -6.50 -0.55 25.27
Spot Palladium 256.00 0.50 +0.20 38.75
TOCOM Gold 2895.00 -7.00 -0.24 12.51 21348
TOCOM Platinum 3573.00 -4.00 -0.11 34.73 7766
TOCOM Silver 416.80 -1.80 -0.43 30.54 87
TOCOM Palladium 789.00 5.00 +0.64 43.45 250
Euro/Dollar 1.4155
Dollar/Yen 94.64
TOCOM prices in yen per gram, except TOCOM silver which is
priced in yen per 10 grams. Spot prices in $ per ounce.
(Editing by Joseph Radford)
