UPDATE 1-India gold demand dull after festival

(Updates to trends in the physical market)

* Spot gold up at $887.55 an ounce <XAU=>

* London Brent crude up at $123.59 a barrel LCOc1

* Rupee stronger at 41.44 per dollar <INR=IN>

* U.S. international trade data at 6 p.m. <MI/DIARY>

MUMBAI, May 9 (Reuters) - India's gold market saw some wholesale demand on Friday though prices inched up, as traders covered their shorts a day after an important festival saw widespread retail sales, dealers said.

"There is some enquiry today, mainly from wholesalers who need to cover for what they have sold," said Daman Prakash Jain of MNC Bullion, a large wholesaler in Chennai.

Gold prices firmed up to one-week highs as crude oil made new records, stoking up inflationary fears that generally boost gold.

A weaker dollar, after the European Central Bank left rates unchanged, also helped gold rise.