Gold near 10-week high on oil, ETF holdings up

By Lewa Pardomuan

SINGAPORE (Reuters) - Gold was steady near its highest level in more than 10 weeks on Thursday, on inflation fears driven by record high oil, and gains in ETF holdings suggested investors were shifting their money back to bullion.

But trading may be slow ahead of U.S. employment data and an

interest rate decision by the European Central Bank, which will determine the direction of the U.S. dollar and precious metals.

"I think the market is kind of toppish around here. We are going to see a narrow range trading today," said Ellison Chu, senior manager at Standard Bank London in Hong Kong.

"I think people would like to keep their books square for the long weekend," said Chu, referring to Friday's U.S. Independence Day holiday.

Gold was at $942.65/943.65 an ounce, steady from $942.60/943.60 an ounce late in New York. Gold rallied to hit a high of $946.50 an ounce on Wednesday, its strongest level since April 17, as fears of rising energy costs spurred buying.

Gold has rebounded around 8 percent since falling to a one-week low at $873.50 last week. The rise above a recent high of $935 also triggered buy signals on charts, but gold was still below a record high of$1,030.80 hit in March.

Gains in ETF holdings suggested investors regained confidence