950808

Gold depicts upward

trend in Tokyo, HK

TOKYO: Yen-denominated gold futures edged up to end at the upper side of the day's range, encouraged by the yen's late weakness against the dollar, traders said.

Yen-based futures ranged from six to 10 yen per grams higher with benchmark June closing up seven at 1,129.

Activity was lackluster due to summer holidays and the absence of new incentives, with prices moving in tandem with the currency market, traders said.

Trade house buying of futures while selling the spot gold in arbitrage trade was countered by private investor profit-taking of TOCOM futures, traders said.

Spot gold was quoted at $384.30/384.60 per ounce at the Tokyo close, against $383.80/384.30 in New York on Monday.

Sentiment in the spot market is still firm, but a lack of new incentives is likely to trap gold in a narrow $383-387 range for some time, a trading house trader said.

Another trader said continued high gold lease rates make traders reluctant to build short-positions in the spot market.

Platinum futures ended mostly higher. Weaker New York overnight trends limited gains in platinum futures in the morning, but most prices rose on the yen's late fall, overwhemling private-investor selling, traders said.

Platinum futures ranged from four yen per gram lower to five higher. Bellwether January ended up four at 1,204.

Traders said expectations of a German interest rate cut at this Thursday's Bundesbank meeting has almost been digested by the market.

Silver and palladium futures ended mostly firmer. Silver prices ranged from 0.6 yen per 10 grams lower to 2.2 higher with benchmark June ending 0.9 up at 153.0. Palladium futures ranged from one lower to six yen per gram up with benchmark June closing up three at 443. Slight supply surplus in the palladium physical market may pressure futures, they said.

HONG KONG: Gold closed firmer on buying fuelled by the stronger tone of silver, dealers said.

Bullion ended at US$384.40/90 an ounce, up from New York's US$383.80/384.30 close on Monday.

"Anticipation of limited downside after it recently found good support at the US$383 level encouraged buying," a local bullion dealer said. "However, topside is seen capped at US$385 on possible producer selling."

Local gold closed HK$10 higher at HK$3,545 a tael.

HONG KONG GOLD CLSG

LOCAL MKT (99.00 FINE HK DLRS PER TAEL)

CLOSING: 3545

PREVIOUS CLOSING: 3535

HIGH: 3545

LOW: 3539

INTERNATIONAL (99.5 FINE US DLRS PER OUNCE)

CLOSING: 384.40/384.90

HIGH: 384.40/384.90

LOW: 383.80/384.30