Gold, little changed in Asia, may gain as investors buy the metal on concern that inflation will pick up as the world recovers from recession. “Longer-term inflation worries will continue to shape demand for gold,” Andrew Chaveriat, a strategist at BNP Paribas, said in report. The metal could make a “creeping advance” to new records above $1,000 an ounce in the next few months, said Chaveriat, citing chart patterns. Gold has climbed 4.3 percent this month and is up 15 percent from this year’s low of $802.59 an ounce on Jan. 15. Nine gold exchange-traded funds now hold 52.59 million ounces, or 0.24 million ounces below the record 52.83 million recorded April 15, UBS AG said in a report. Gold holdings in the SPDR Gold Trust, the biggest exchange-traded fund backed by bullion, were unchanged at 1,105.62 metric tons as of May 19, according to figures on the company’s Web site. Gold prices are moving in a “positive but slowing” way, with a “bullish outlook,” UBS said. Immediate-delivery gold was little changed at $926.63 an ounce at 10:47 a.m. in Singapore. The spot gold price set a record of $1,032.70 on March 17 last year, Bloomberg data show. Gold for June delivery in New York was unchanged at $926.70 an ounce at the same time. Possible Rally “Key support at $880 must hold to preserve the bullish outlook” and spot gold could reach $980 on ounce in three months, Chaveriat of BNP Paribas said, citing technical analysis. “Breaking $967 would favor extending the rally above the $1,006 February high toward the historic $1,032 March ‘08 peak. Exceeding that level would open scope to $1,045-$1,095.” Looking at other precious metals, he said “the prospects for a large gold advance would be enhanced if spot silver breaks above the strong resistance from its $14.64 February high.” Silver was little changed at $14.1425 an ounce after surging 3.1 percent yesterday. Platinum for immediate delivery was also little changed at $1,136 an ounce and palladium was at $233.25 an ounce.

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