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Gold rises in Tokyo,

little changed in HK

TOKYO: Tokyo precious metal futures closed sharply higher, with most glued steadfast to their daily price limits throughout the day, due to the yen's plunge against the dollar, traders said.

A widespread view that the dollar will soon rise to 100 yen attracted massive buying. "Private investors wanted to buy, but could not place orders as trading houses lined up for massive buy orders," a commodity brokerage house analyst said. August gold futures, limitless ahead of expiry, ended 52 yen per gram up at 1,215. September to June futures were stuck at their 40 yen per gram daily limit, with benchmark June at 1,202.

"The theoretical value of September to June gold futures should be about 10 yen higher than the current levels, considering the current currency rates", one trader said. He expected fresh buying by private investors to emerge tomorrow.

Spot gold was weaker at $384.30/384.60 per ounce at the Tokyo close against $385.20/70 in New York on Tuesday. In spite of trading house selling of spot gold in arbitrage trade in response to the dollar' rally, market sentiment for spot gold remains firm with solid support seen at $384, traders said.

Platinum futures ended sharply higher on trading houses' active buying, overwhelming private investors' profit-taking.

Platinum August futures, also limitless ahead of expiry, ended 63 yen up. September to June contracts clung to their 50 yen per gram daily limit. Benchmark June stood at 1,277. Spot platinum was quoted at $384.30/384.60 per ounce after opening at $419/420. "Losses in spot platinum were limited considering the dollar's strength, as short-covering by U.S. funds was countered by trading house selling" a trader said.

All silver futures except for spot August kept 8 yen per 10 grams daily price-rise limits at the close. Benchmark June was at 166.2. All palladium futures except for spot August rose by the 22 yen per gram daily limit.-Reuter