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Gold up in Tokyo,

little changed in HK

TOKYO: Yen-denominated gold futures ended higher due to the yen's weakness against the dollar, combined with gains in New York overnight, traders said.

Prices ranged from one to 11 yen per gram higher with benchmark June finishing two up at 1,131.

In moderate activity, trading houses bought futures while selling spot gold in arbitrage trade, they said. Trading houses' buying of TOCOM futures, based on the outlook for the yen's continued weakness against the dollar, was countered by private investors' profit-taking of distant months around 1,130 yen. Trading was concentrated in distant months throughout the day, they said.

One trading house trader said heavy overseas buying interest in TOCOM distant months because of the lower prices in comparison with spot gold was causing short-term gold lease rates to remain at high levels.

Traders usually sell spot gold, which sends lease rates higher, while buying futures in arbitrage trade.

Spot gold was quoted at $384.40/$384.90 per ounce, compared with $384.50/385.00 in New York on Tuesday. Resistance is seen at $385.50, a trader said.

Silver futures ranged from 0.4 yen per 10 grams lower to 2.7 higher, with bellwether June closing up 1.1 at 154.1.

There was little movement in silver lease rates during Asian hours, after a surge overnight, traders said.

Market players were waiting for the second leg of the U.S. Treasury auction and a Bundesbank meeting due later today, traders said.

Platinum futures ended higher in tandem with gold. Prices ranged from one to 12 yen per gram higher, with benchmark June up seven at 1,211.

Palladium futures ranged from two to four yen higher, with benchmark June closing up two at 445. HONG KONG: Gold scarcely moved in dull trade with most players absent, dealers said.

Bullion ended at US$384.40/90, vs New York's closing US$384.50/385.00 and the local opening of US$384.30/80.

"Gold remained trapped in a narrow band with producer selling at the US$385 level capping the upside while short-covering gave support on the downside," a local bullion dealer said.

Dealers expect gold to follow silver and remain firm in the short run. Local gold was unchanged at HK$3,545 per tael.-Reuter