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Gold mixed in Tokyo,

weak in HK

TOKYO: Yen-based Tokyo gold futures closed mixed on Friday, erasing earlier price gains as local investors were slow to react to the yen's falls against the dollar, traders said.

Gold prices ranged from seven yen per gram lower to two yen higher, with benchmark February down three yen at 1,373. Volume was 42,250 lots.

Higher world crude oil prices, which reflected very low stocks heading into the summer travel season in the United States, failed to encourage Japanese investors to buy the yellow metal, the traders said.

Gold futures prices gained slightly on the yen's weaker sentiment in early trading, but individual investors are now more interested in volatile grain contracts, the traders said.

Spot gold was quoted at $395.15/395.45 per ounce at the Tokyo close, against $395.70/396.00 in New York on Thursday.

Yen-based platinum futures also closed mixed. Prices ranged from six yen per gram lower to four yen higher, with benchmark February up two yen at 1,426.

"Traders in Hong Kong and Australia sold in the spot market when prices approached the $410 level. Individual investors in Japan were hesitant to trade in the futures," a trader said.

Palladium futures were lower in all months at the closing. Prices were one to five yen per gram lower, with benchmark February down four yen at 478. Silver futures ended mixed, with prices ranging from 0.1 yen per 10 grams lower to 1.5 yen higher. Benchmark February was up 1.3 yen at 195.1. HONG KONG: Hong Kong bullion ended at US$395.10/395.60 an ounce Friday against New York's US$395.70/396.00 close on Thursday.

Local gold ended HK$2 lower at HK$3,638 a tael.

"Sentiment over gold is somewhat mixed," traders said, but added that the market remained quiet on the whole.

"There was no actual big action," they noted.

Meanwhile, China's demand for gold is likely to pick up in early May, a Beijing-based industry source tracking China's gold demand said.

China's peak demand period for gold falls prior to the Chinese Lunar New Year which this year started on February 19.

China's demand for gold in 1995 was 224 tonnes, according to calculations using official figures combined with trade sources, the Beijing source said.

Hong Kong traders said earlier that China's demand for gold has slowed in an environment where credit is limited.

China's retail gold price, fixed by the country's central bank, has gone up by about 3.0 yuan since late January following the rise in international gold prices, the gold source said.

"The current retail price of gold in China is 130-142 yuan per gram," the source said.-Reuter