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Gold futures

weaker in

Tokyo

TOKYO: Yen-denominated gold futures ended weaker across the board on Wednesday, but climbed back from early lows in response to the yen's continued weakness against the dollar, traders said.

Gold futures ranged from one to five yen per gram lower, with benchmark February finishing down three at 1,373.

Gold opened lower in tandem with sharply lower gold prices in New York overnight, but gold prices recovered gradually as the dollar was trading well above 108 yen.

"Fundamental sentiment is bullish on expectations that the dollar is set to rise further," a trading house trader said.

"The market sees the benchmark February soon testing 1,400 yen per gram, backed by the yen's weaker tendency, but private investors' profit-taking is likely to emerge at above 1,400 yen," the trader said.

Spot gold was quoted firmer at $394.70/395.00 per ounce at the Tokyo close, against $394.30/60 in New York on Tuesday.

Activity in the spot market was subdued. "The support of $393 will be solid, but the upside of $398 is expected to be hard to break through this week, and U.S. economic indicators scheduled to be released later this week may help to provide the market direction," another trader said.

Platinum and palladium futures settled mixed, while silver futures ended lower. Activity remained lacklustre as the market lacked fresh incentives except for the currency rates.

In the platinum futures market, private investors were wary of fresh buying, they said. Platinum futures ranged from four yen per gram lower to three firmer. Benchmark February was up one at 1,423.

Palladium futures ranged from three yen per gram lower to one firmer, with benchmark February finishing down two at 480.

Silver futures ranged from 0.9 yen to 3.6 yen per 10 grams lower. Benchmark February was down 1.8 at 192.4.-Reuter