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Gold futures plunge in

Tokyo on weak dollar

TOKYO: Yen-denominated gold futures ended lower due to the yen's firmer tone against the dollar and the weakness in gold prices in New York on Friday, traders said.

Activity was subdued by market holidays in Hong Kong and London today. Sporadic arbitrage trade between spot gold and futures by trade houses was noted by private investor activity was limited because of a divided outlook for currency markets, they said.

Prices ranged from two to 10 yen per gram lower with benchmark June ending down six at 1,186. At midday, spot August expired down four at 1,189 with 5,006 deliveries made.

Platinum futures ended lower, pressured by the yen's appreciation against the dollar, traders said.

At midday, spot August expired down one at 1,321 with 913 deliveries made. Other contracts ranged from seven to 14 yen per gram lower, with benchmark June ending down seven at 1,287.

"The possibility of strikes at South Africa's mines provided psychological support to spot platinum, but little activity was noted during Asian hours," one trader said. Spot platinum was quoted at $431.00/431.75, unchanged from the Tokyo opening. Silver futures slipped following lower trends in New York last Friday.

At midday, spot silver August expired down 2.5 yen at 165.0 with 525 deliveries made. Other contracts ranged from 1.5 to 3.7 yen per 10 grams lower, with bellwether June ending down 3.4 at 170.4. Silver lease rates have shown signs of declining amid an easing of worries about silver near-term supplies, traders said.

Palladium futures were under pressure throughout the day, discouraged by slight oversupply trends in Japan. The spot palladium contract expired down 11 at 447 with 584 deliveries made. Other contracts ranged from five to 11 yen lower.-Reuter