PRECIOUS-Gold mostly flat near $950, ETF steady

* Gold trades close to NY close

* SPDR gold ETF holdings XAUEXT-NYS-TT steady

By Miho Yoshikawa

TOKYO, June 9 (Reuters) - Gold was mostly flat on Tuesday,
trading around $950 as the dollar took a break from its rally,
improving the precious metal's appeal as a currency hedge.

Bullion neared $1,000 per ounce last week, a key level it
last topped in February, as worries about inflation and a weaker
U.S. currency increased gold's attraction as an alternative
investment.

It hit an 11-month high of 1,005.40 on February 20.

Gold XAU= was at $950.55 per ounce at 0605 GMT, little
changed from New York's notional close of $950.05.

"Hedge funds are getting their direction from the currency
markets and they have been selling (gold) on the dollar's
rally," said Koji Suzuki, a senior analyst at SBI Futures Co
Ltd.

"And we find regular investors buying gold as a hedge when
the dollar weakens," he said.

Bears say short-term funds are driving up the market, which
means that any gains would not last long.

Suzuki said, however, that he believed gold would eventually
head towards $1,000 given that there is still some uncertainty
about the U.S. economic outlook.

The dollar dipped against the euro on Tuesday, taking a
breather after rallying in the wake of last week's U.S. jobs
data, which stirred talk that the Federal Reserve may raise
interest rates later this year. [USD/]

The euro rose 0.1 percent to $1.3920 EUR=, having regained
ground after dropping to $1.3806 on trading platform EBS on
Monday, its lowest since late May.

The world's largest gold-backed exchange-traded fund, the
SPDR Gold Trust (GLD), said holdings were steady at 1,132.15
tonnes as of June 8, unchanged from the previous business day.
It is still in sight of the record high of 1,134.03 tonnes
marked on June 1. [GOL/SPDR]

Interest in platinum ETFs remained steady.

The amount of metal ETF Securities holds to back its
platinum-backed exchange-traded commodity rose nearly 20,000
ounces or 6.9 percent in the week to June 5, the company said in
a daily report on Monday. [ID:nL8513275]

Strong prices have kept physical buyers sidelined.

Buying in India, the world's largest consumer, slowed to a
trickle as the wedding season neared an end and buyers waited
for domestic prices to fall further.

Gold demand rises in India during the Hindu marriage season
as parents buy jewellery as gifts to provide their daughters
with some financial security in times of crisis.

PRICES

Precious metals prices at 0607 GMT
Metal Last Change Pct chg YTD pct chg Turnover
Spot Gold 950.60 0.55 +0.06 8.00
Spot Silver 14.91 0.00 +0.00 31.71
Spot Platinum 1231.00 -11.00 -0.89 32.08
Spot Palladium 245.50 -2.00 -0.81 33.06
TOCOM Gold 3008.00 -28.00 -0.92 16.91 44296
TOCOM Platinum 3899.00 -67.00 -1.69 47.02 22572
TOCOM Silver 469.20 -10.90 -2.27 46.95 558
TOCOM Palladium 784.00 -37.00 -4.51 42.55 606
Euro/Dollar 1.3874
Dollar/Yen 98.04
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 Chikako Mogi; Editing by Chris
Gallagher)