Gold rose on Tuesday on light cash buying to around $920 per ounce, but investors were cautious as another day of improved U.S. housing data could further dull the metal's appeal as a safe haven from volatility in other markets. On Monday gold hit a one-week low of $915.05 as U.S. stocks rallied after better-than-expected earnings results from the home improvement sector gave investors their latest reason to hope the worst of the recession was over. Those prospects could be strengthened by April data on U.S. housing starts and building permits due at 1230 GMT on Tuesday, which economists think will show housing starts rose to 0.52 million from 0.51 million in March, according to a Reuters poll. "Gold moved up slightly on physical buying below $920, but it basically remained in the usual price range of between $915 and $930," said Peter Tse, a dealer at Scotia Mocatta in Hong Kong. Spot gold rose 0.4 percent to $920.80 per ounce by 0253 GMT, compared with New York's notional close of $917.20. On Friday bullion hit a seven-week high of $933.65 per ounce after data showed U.S. core inflation in April rose more than expected. "Right now gold does not have its own momentum, and follows movements elsewhere," Tse said, adding that the metal could come under pressure if U.S. stocks extended their gains from Monday, when the S&P 500 index jumped 2.5 percent. [.N] U.S. gold futures for June delivery GCM9 inched down 0.1 percent to $920.70 per ounce, compared with Monday's settlement of $921.70 an ounce on the COMEX division of the New York Mercantile Exchange. Analysts also said gold would be well supported by any sign of rising prices, given the ample liquidity central banks have been supplying to help their economies recover. Investors are torn between gold's allure as an alternative to equities and a hedge against a heat-up in economic activity or inflation, said Yukoh Shoji, an analyst at Orval Next Corp, a Japanese brokerage. "Investors are finding it difficult to sell gold-backed exchange traded funds for now because inflation risk is looming in the long term," he said. Investors have been neither adding or withdrawing money from gold-backed funds in the past few days, with holdings at the world's largest gold-backed ETF, SPDR Gold Trust GLD, unchanged at 1,105.62 tonnes from May 18. [GOL/SPDR] Spot platinum rose 0.2 percent to $1,130 an ounce from New York's notional close of $1,128.50, supported by hopes of recovery in demand from automakers for catalytic converters. Those hopes were underscored by news that U.S. President Barack Obama on Tuesday would propose the most aggressive increase in U.S. auto fuel efficiency ever, in a policy initiative that would also directly regulate emissions for the first time and resolve a dispute with California over cleaner cars. [ID:nN18364500] London is playing host this week to the annual Platinum Week event, a gathering of leading industry figures. [ID:nLF825216] Precious metals prices at 0301 GMT Metal Last Change Pct chg YTD pct chg Turnover Spot Gold 920.50 3.30 +0.36 10.54 Spot Silver 13.79 0.07 +0.51 -6.64 Spot Platinum 1130.50 2.00 +0.18 -25.63 Spot Palladium 227.00 0.50 +0.22 -38.32 TOCOM Gold 2867.00 7.00 +0.24 -6.31 15789 TOCOM Platinum 3538.00 128.00 +3.75 -33.73 7580 TOCOM Silver 425.80 -0.70 -0.16 -21.29 123 TOCOM Palladium 715.00 16.00 +2.29 -47.08 119 Euro/Dollar 1.3558 Dollar/Yen 96.49

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