Gold holds above $900/oz on inflation fears

SYDNEY, May 20 (Reuters) - Gold held steady above $900 an ounce on Tuesday on inflation concerns as oil traded near record highs.

-- Spot gold XAU= cost $904.90 an ounce, little changed versus closing prices in New York.

-- In earlier New York trading, bullion hit a peak of $913.35 an ounce, the highest since April 23 as inflation fears took hold.

-- Gold futures for June delivery GCM8 on the COMEX division of the New York Mercantile Exchange slipped 60 cents to $905.20 an ounce in electronic trading.

-- Dealers pointed to rising oil prices and a steady U.S. dollar as key supporting factors in bullion markets, though signs of a resurgent dollar or a retreat in oil could undermine any rally

-- U.S. crude futures CLc1 traded above $127 a barrel near an all-time high. In theory, firmer crude oil lifts gold's appeal as a hedge against inflation.

-- Spot platinum XPT= was at $2,142.50 an ounce versus $2,146.00 in New York.

-- Spot silver XAG= was flat at $16.98 an ounce, while spot palladium XPD= dropped $1.50 to $444.50 an ounce (Reporting by James Regan; Editing by Anshuman Daga)