* Spot gold rises to one-week high as technicals support
* Holdings by SPDR Gold <XAUEXT-NYS-TT> fall 0.5 pct
By Chikako Mogi
TOKYO, June 26 (Reuters) - Gold prices edged above $940 to a
one-week high on Friday as firmer oil prices supported bullion's
appeal as a potential hedge against oil-led inflation.
The precious metal has gained about 1 percent this week after
touching a six-week low on Tuesday, a point traders said was a
consolidation level.
Gold's upside may be tested next week as sentiment has
improved, with the dollar losing its upward momentum and
commodities rising, while there are still fears that inflation
will continue, traders said.
"There is some bullish sentiment in the market and prices may
move higher next week," said a Hong Kong-based banker.
"The dollar is weakening while commodities are rising, and
there are some worries that interest rates may rise. Inflation
concerns could push up gold," the banker said.
Spot gold <XAU=> rose to a high of $942.60 per ounce, up 0.4
percent from New York's notional Thursday close of $938.55, and
its highest since June 18.
It traded at $941.40 at 0550 GMT.
Gold prices turned around after falling to a low of $912.90
on Tuesday, their lowest in six weeks, suggesting the market has
confirmed a floor for now, the manager said.
U.S. gold futures for August delivery <GCQ9> rose 0.3 percent
to $942.10 per ounce, compared with Thursday's settlement of
$939.50 on the COMEX division of the New York Mercantile
Exchange.
Oil prices extended gains above $70 a barrel <CLc1> on
Friday, after jumping 2.3 percent the previous day after renewed
rebel attacks against oil facilities in Nigeria and worries that
a glitch at the largest U.S. oil refinery could tighten gasoline
stockpiles this summer driving season. []
In addition to gains in oil prices, the dollar's fall
benefited bullion, which is often viewed as insurance against the
falling value of investors' dollar-denominated assets.
The dollar fell against a basket of currencies on Friday,
extending losses made the previous day as investors shifted funds
back into risky assets, with the Federal Reserve this week
appearing to confirm it will keep interest rates low for a while.
[]
Just as the spot market was confined to narrow ranges,
inflows into gold-backed exchange-traded funds waned.
Holdings at the world's largest gold-backed exchange-traded
fund, SPDR Gold Trust <GLD>, fell 0.5 percent to 1,125.74 tonnes
as of June 25, down 5.5 tonnes from the previous business day.
[]
Precious metals prices at 0549 GMT
Metal Last Change Pct chg YTD pct chg Turnover
Spot Gold 941.40 2.85 +0.30 13.05
Spot Silver 14.11 0.10 +0.71 -4.47
Spot Platinum 1198.00 13.50 +1.14 -21.18
Spot Palladium 242.50 0.50 +0.21 -34.10
Euro/Dollar 1.4031
Dollar/Yen 95.90
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 Michael Watson)
