Tokyo gold buoyed by yen

Gold futures on the Tokyo Commodity Exchange (TOCOM) firmed on Monday as a weaker yen induced light short-covering, although rises were capped by falls in spot metals prices, brokers said.
Benchmark April 2005 gold finished five yen per gram higher at the day's high of 1,368, rebounding from a low of 1,358. Other months gained four to 11 yen.
"A weaker yen lent support to TOCOM prices, but it failed to spur active buying as market participants brace for further falls in spot market prices under pressure from a stronger dollar," a Tokyo broker said.
Spot gold was quoted at $383.00/383.70 an ounce, down from $384.70/385.50 in late London trade on Friday, as growing speculation of an imminent rise in US interest rates fuelled gains in the dollar.
Gold is expected to trade nervously until the Federal Open Market Committee (FOMC) meeting on June 29-30, as operators are pondering whether the Federal Reserve will raise interest rates by 25 or 50 basis points from a 46-year low of 1 percent in a bid to contain inflation, brokers said.
A rise in US interest rates would make dollar-denominated assets more attractive, which would boost demand for dollars. But a higher dollar makes precious metals more expensive for holders of other currencies.
Traders said the market would be focusing on US economic data due out this week, including retail sales and consumer price index numbers, for more clues on interest rates.
The dollar touched 111.05 yen, up one yen from the day's low in Tokyo of 110.05 and from 110.14/19 in late US on Friday.
Platinum futures regained ground on Monday, with the benchmark April contract recovering the key 2,700 yen level on yen-inspired buying.
Volume was thin, as operators were reluctant to trade actively, waiting for US players coming back from the three-day weekend after a national day of mourning on Friday for former President Ronald Reagan.
April platinum ended up 22 yen per gram at 2,707, with other months gaining 15 to 29 yen.
Spot platinum was quoted at 791.00/796.00 an ounce, against $792.00/797.00 in late London trade.
Below are closing prices for TOCOM's most active precious metals contracts, with the day's turnover for each metal.