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Gold futures finish

higher in Tokyo, HK

TOKYO: Yen denominated gold futures edged up to end at the higher end of the day's range, encouraged by the dollar's recovery against the yen later in the day and firmer New York overnight trends, traders said.

Prices ranged from five to 16 yen per gram higher, with benchmark June ending up 10 at 1,162.

Trading houses were concentrating more on tintermonth trade rather than arbitrage trade, while private investors' participation was limited due to summer holidays. Trading house's short-covering on the dollar's recovery was countered by dealers' long liquidation on their own positions, they said.

Spot gold was quoted firmer at $384.60/384.90 per ounce at the Tokyo close against $384.20/70 in New York on Monday.

Silver futures ended also higher in tandem with silver price gains in New York overnight, traders said. Private investors sold TOCOM nearby months while buying distant months, they said. But the topside is heavy, with the upper resistance seen at 160 yen for distant months, one trader said.

Short-covering by private investors was also prompted by the view that distant months were oversold, traders said.

Trade houses, which were buying TOCOM in earlier trade, switched to selling TOCOM later while selling the spot platinum in arbitrage trade. Sharp gains in Tokyo stocks today were also seen positive for the platinum market, one commodity brokerage house analyst noted.

Spot platinum was up at $418.00/419.00 at the Tokyo close after opening at 416.50/41.50 on buying from overseas operators. Palladium ranged from one to five per gram higher with benchmark closing up one at 444.

HONG KONG: Gold closed slightly firmer after remaining trapped within a tight range all day in quiet, directionless trading, dealer said.

Bullion ended at US$384.40/90 an ounce against New York's US$384.20/70 close and the local opening of US$384.30/80.

"The local market has been very quiet, with a small amount of short covering interest," said a dealer at an international metals house. "Most participants are looking on the silver prices for a hint on future movement and it looks like gold will stay around US$382-386 in the short-term." Local gold ended HK$11 higher at HK$3,547 a tael.-Reuter