* U.S. headline inflation unchanged as expected; core CPI up
* Holdings by SPDR gold ETF <XAUEXT-NYS-TT> steady
* Bullion seen between $900-$930 in short term
(Updates prices)
By Rebekah Curtis and Jan Harvey
LONDON, May 15 (Reuters) - Gold climbed to its highest in
six weeks on Friday after data showed U.S. core inflation rose
more than expected in April, which boosted the precious metal's
appeal as a hedge against rising prices.
Spot gold <XAU=> rallied to $930.45 an ounce, its highest
since April 1 and was at $928.85 per ounce at 1427 GMT, compared
with $925.35 quoted late in New York on Thursday. U.S. gold
futures for June delivery <GCM9> on the COMEX division of the
New York Mercantile Exchange edged up to $929.80 an ounce.
U.S. consumer prices were unchanged in April, the figures
showed, but core prices, which exclude food and energy, rose 0.3
percent, versus a 0.2 percent rise in March. []
"We've seen gold edging higher over the past week or so and
quite a bit of that is inflation related," James Moore, an
analyst at TheBullionDesk, said.
"Given the scale of quantitative easing that we have seen,
the potential implications for inflation are quite large."
Gold is also deriving support from fears over the health of
the global economy after a spate of disappointing economic data.
German gross domestic product (GDP) contracted by a much
larger than expected 3.8 percent in the first three months of
2009, tightening nerves after a poor reading of U.S. April
retail sales earlier this week []
Gold shot to $930.40 earlier this week, its highest since
April 1, buoyed by purchases for gold-backed exchange-traded
funds (ETFs).
But buying has been hampered by a rebound in global stock
markets <.MIWD00000PUS> in a reflection of improved appetite for
assets connected with risk.
The world's largest gold-backed exchange-traded fund, the
SPDR Gold Trust <GLD>, said holdings were unchanged at 1,105.62
tonnes on Thursday.
Gold may stay range-bound between $900 and $930 for a while
because of a loss of momentum for the metal and as investors eye
movements in the equities and oil markets, some analysts said.
PLATINUM WEEK
Platinum <XPT=> was at $1,107.50 ounce from $1,109.50.
The metal, used to clean exhaust fumes from vehicles, has
lost about 3.5 percent over the past week, despite traditionally
gaining ahead of the annual platinum week gathering in London,
which begins on Monday with the launch of refiner Johnson
Matthey's platinum report.
"Often, the run up to Platinum Week sees prices of this
pricey metal move higher as investors anticipate good news from
the mix of data and commentary from Johnson Matthey. So the
recent weakness of platinum is all the more unusual," John
Reade, UBS head of metals strategy, said in a note.
"The sell-off appears to have been driven by investor
selling -- We have also heard talk of bank and fund selling of
OTC and futures positions in anticipation of GM's likely move
into Chapter 11 sometime in the next few weeks."
General Motors Corp <GM.N>, facing possible bankruptcy, is
set to restructure its bond debt and reach a new sweeping deal
with its major union by June 1. []
Palladium <XPD=> was at $224.50 an ounce from $223.50 and
silver was at $13.94 an ounce from $14.00.
(Editing by Anthony Barker and Sue Thomas)
