* Gold up 0.2% this week
* Platinum set for best week since early December
* Gold could rise to $1,950/oz this year -analyst
(Updates prices, adds quotes)
By Nakul Iyer
Feb 12 (Reuters) - Gold slipped as the dollar rebounded on
Friday while platinum took a breather after expectations of a
rebound in industrial demand drove a rally to a more than
six-year peak and put it on course for its best week in two
months.
Spot gold XAU= lost 0.5% to $1,816.40 an ounce by 1221 GMT
and U.S. gold futures GCv1 were down 0.6% at $1,816.30.
"The inverse relationship between gold and the dollar has
been strong recently and the rebound in the dollar has had a
negative impact," said David Madden, market analyst at CMC
Markets UK.
The dollar .DXY edged up 0.2%, reducing gold's appeal to
buyers holding other currencies. "In the short term, there is little to suggest that the
prospects for gold will brighten, as this would require
inflation risks to increase noticeably," Commerzbank analysts
said in a note.
Gold is often seen as a hedge against inflation.
Still, expectations for an economic stimulus package in the
United States helped to keep gold prices on course for a first
weekly rise in three. "Our thesis for the next year or two is that equities and
gold are going to do well because of inflationary expectations
and monetary and fiscal stimulus remain supportive for both,"
said Hitesh Jain, lead analyst at Mumbai-based Yes Securities,
adding that the metal could rise to $1,950 this year.
Spot platinum XPT= dropped 1.3% to $1,219.13 an ounce
after scaling a more than six-year peak of $1,268.88 on
Thursday. The autocatalyst metal was also set for its best week
since early December, gaining more than 8%.
"Reports that some futures and derivative exchanges have
increased their margin requirements have put the brakes on the
demand for platinum," CMC's Madden said. But expectations of a rebound in industrial production and
the automotive sector this year should lift the metal, he added.
Silver XAG= rose 0.3% to $27.04 an ounce and palladium
XPD= gained 0.3% to $2,351.47.