* Dollar steadies versus the euro following data
* Inflation concerns in UK, emerging markets mount
(Releads, updates prices)
By Jan Harvey
LONDON, Feb 16 (Reuters) - Gold held just above $1,370 an
ounce on Wednesday, rolling back from earlier four-week highs as
the euro surrendered gains versus the dollar after a raft of
U.S. economic data.
The dollar recovered lost ground against the single currency
after a report showed producer prices edged up last month and
housing starts rose more than expected, bolstering views that
the economy is strengthening. []
Spot gold <XAU=> hit a peak of $1,377.65 an ounce and was
bid at $1,371.64 an ounce at 1400 GMT, against $1,372.95 late in
New York on Tuesday. U.S. gold futures for April delivery <GCJ1>
fell $1.90 an ounce to $1,372.20.
The metal remained in a relatively narrow trading range,
however, as tension in the Middle East and concerns over the
inflation outlook underpinned prices, while better appetite for
higher-yielding assets curbed fresh buying interest.
"There are a number of conflicting signals for what is
usually driving gold," said Peter Fertig, a consultant at
Quantitative Commodity Research. "This is currently leading to a
bit more sideways trading."
Wednesday's data showed both housing starts and the producer
price index for January came in above expectations, which
prompted Treasuries to pare gains.
Core PPI showed a 0.5 percent month on month rise in
January, above expectations for a 0.2 percent increase.
Equity markets meanwhile were supported on Wednesday by
positive corporate earnings reports. [] []
Dollar watchers are now awaiting the release of the Federal
Open Market Committee's minutes of its Jan. 25-26 meeting on
monetary policy.
ETF OUTFLOWS STEADY
Gold prices are also taking some support from a reduction in
outflows from physically backed exchange-traded funds, whose
gold holdings fell significantly in January.
Holdings of the largest, New York's SPDR Gold Trust <GLD>,
eased to a nine-month low on Tuesday, but outflows this month so
far are well below January's levels. []
"Easing investor ETF outflows after a substantial January
pullback helped to keep the new short-term uptrend intact," said
VTB Capital analyst Andrey Kryuchenkov in a note.
Demand in number one gold consumer India was light, with
many buyers absent for a local holiday.
However, the winter harvesting season, which is expected to
leave more disposable income with gold-buying rural households,
is underway, while the marriage season has also started and will
last through May. []
Meanwhile, an Industrial and Commercial Bank of China
executive said Chinese demand for physical gold and gold-related
investments is growing at an "explosive" pace and is set to
remain robust amid inflation concerns. []
On the supply side of the market, African Barrick Gold
<ABGL.L> said it expects to produce 700,000-760,000 ounces of
gold in 2011, as it announced better-than-expected financial
results. []
Among other precious metals, silver <XAG=> was at $30.62 an
ounce against $30.76. Platinum <XPT=> was at $1,822.85 an ounce
against $1,827.24, while palladium <XPD=> was at $835.28 against
$835, having touched a 10-year high at $847 on Tuesday.
(Reporting by Jan Harvey, editing by Anthony Barker)
