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Gold futures down

in Tokyo, Hong Kong

TOKYO: Yen-denominated gold futures edged down across the board to close mostly at day's lows, weighed down by the yen's firmer tone against the dollar, traders said.

Prices ranged from eight yen to 13 yen per gram lower with benchmark June ending down 10 at 1,191.

Activity was choppy due to uncertainty over near term trends in the currency market. "Market participants are watching to see how far the yen will regain in the near future after the dollar's recent sparkling jump," a commodity brokerage house analyst said. Prices extended their losses as stop-loss selling and profit-taking emerged in late afternoon.

Trade houses concentrated more on inter-month trade than on arbitrage between futures and the spot, traders said. Spot gold activity was thin. It was quoted weaker at $383/90/384.20 per ounce at the Tokyo close against $384.40/384.90 in New York on Monday.

Silver futures also ended weaker, pressured by private investor profit-taking. Prices ranged from 2.4 to 5.8 yen per ten grams weaker with bellwether June ending down 3.1 at 174.5.

Spot silver was weaker at $5.7550-5.7650 after opening at 5.7950-5.81 in Tokyo. Trade houses bought futures while selling spot silver in arbitrage trade, they said.

"Spot silver may test $5.90/6.00 in the near term but after reaching those levels, it could collapse in reaction to recent rapid rises" one trader said.

The market is eyeing today's Federal Open Market Committee meetting, but it is expected to have little impact on precious metals as no changes in rates are expected, traders said.

Platinum futures ended lower. Futures ranged from three to 16 yen per gram lower. Benchmark June closed down 14 at 1,288.

Palladium futures were mixed. Prices ranged from four yen per gram lower to one higher with benchmark June finishing down four at 463.

HONG KONG: Gold closed easier on selling and profit-taking in line with a weaker close in New York overnight, dealers said.

Bullion ended at US$383.70/384.20 an ounce, down from New York's US$384.40/90 close and the local opening of US$384.00/50.

"General lack of buying interest together with profit taking and a weaker silver price triggered the selling interest on gold," said a dealer at a major bank. "The U.S. dollar and the silver price will affect gold in the short term."

Local gold fell HK$14 to close at HK$3,542 a tael.-Reuter