Tokyo gold declines

The key Tokyo gold futures contract fell for a fourth session on Wednesday, losing 1.5 percent after a recovery in the dollar helped send the metal's spot price to a two-week low. A rise in the dollar is negative for the dollar-based spot gold price as it makes the metal less attractive for global investors as a currency alternative.
"A rise in the dollar and position unwinding ahead of the Christmas holiday season kept downward pressure on the precious metals market," said Hiroyuki Kikukawa, an associate director at Nihon Unicom Inc.
The European Central Bank's policy meeting later in the day is awaited as it could affect the currency market and precious metals prices, he said. The dollar held gains scored in the previous session after a private-sector report showed solid US job growth in November, boosting chances of a positive payroll report later in the week.
The key October gold contract on the Tokyo Commodity Exchange finished the session at 2,345 yen per gram, down 35 yen or 1.5 percent from the previous close. The contract has fallen 3.8 percent from its highest level in almost four months marked late last week. Spot gold traded at $627.10/628.60 an ounce, compared with $630.60/632.10 in New York late on Wednesday. The dollar barely budged from late New York trade at around 115.10 yen, up from a one-month low of 114.43 yen struck on Tuesday.
The euro was little changed near $1.3290, hovering below a 20-month peak of $1.3370. The TOCOM October platinum futures finished the session at 4,052 yen per gram, down 89 yen or 2.2 percent from the previous close. The October contract has fallen more than 7 percent this week to its lowest level in a month. Spot platinum fell to $1,099/1,104 an ounce, its lowest level since November 2.
The metal stood at $1,120/1,125 in late New York on Wednesday. Key TOCOM silver for October delivery finished the session down 8.9 yen per 10 grams, a 1.8 percent fall, at 496.1 yen. The October contract rose as high as 521.5 yen on Monday, the highest for a benchmark contract since September 12, 1985. Cash silver fell to $13.43/3.50 an ounce. The metal was quoted at $13.57/64 in late New York on Wednesday.