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Gold shows firmer in Tokyo

TOKYO: Yen-based gold futures closed firmer, but mostly at the lower side of day's range due to the late weakness in the yen against the dollar, traders said.

Prices ranged from two to eight yen per gram higher. Benchmark June finished three firmer at 1,194.

Activity was subdued with private investors seen mostly on the selling side, traders said. Spot gold was quoted at $383.20/383.50 per ounce at the Tokyo close against $382.90/383.40 in New York on Tuesday.

In the spot silver market, prices fell on stop-loss selling by overseas operators, traders said.

Spot silver closed Tokyo at $5.6325/5.6425 per ounce after opening at $5.6675/5.6775.

"Overseas selling spilled into the market after sharp losses were posted in New York on Tuesday," a trading house trader said. He saw silver slipping to around $5.50, before gathering momentum to later target $6.00.

Spot silver's weakness is expected to have limited impact on gold which is likely to hold above $381.50, traders said.

Yen-based silver was mostly weaker reflecting overnight losses. Prices ranged from 2.8 yen per ten grams weaker to 1.3 higher. Benchmark June finished 0.5 easier at 174.0.

As well as focusing on the volatile silver market, traders said they would watch out for reaction in the currency markets to the Bundesbank central council meeting on Thursday.

Unchanged German interest rates would likely be positive for precious metals, a second trading house trader said.

Platinum futures ranged from one to nine yen per gram higher. Benchmark June finished six up at 1,294.

Palladium futures were higher except for October, which was one yen down at 467 yen. Other prices were two or three higher. Benchmark June closed three up at 466.