Tokyo gold futures rose across the board on Friday, hitting contract highs after the yen tumbled against the US dollar in what appeared to be a massive intervention by Japanese authorities.
The benchmark December 2004 gold contract on the Tokyo Commodity Exchange settled up 22 yen per gram at 1,450 yen, after wavering between 1,439 yen and 1,458 yen, a fresh life-of-contract peak. Other months rose by 18 to 21 yen." Without a doubt, the yen-selling intervention boosted gold (on TOCOM) today," a Tokyo analyst said.
"The market was sluggish before that but, it was like it panicked after the news (on the intervention)," he said. The dollar was fetching 107.00/7.03 yen, against 106.15/16 yen at about the same time on Thursday.
Trading on TOCOM was typically quiet ahead of the three-day weekend before news of the intervention, traders said.
TOCOM will be closed on Monday to mark Coming-of-Age Day, a national holiday. All other precious metals contracts finished higher, with some hitting contract highs.
Total gold turnover was estimated at healthy 142,450 lots, or about 142.45 tonnes, up from Thursday's 100,238 lots.
In the spot market, bullion was fetching $421.25/2.25 an ounce at TOCOM's closing bell, compared with $423.85/$424.55 last quoted in New York.
Below are closing prices for TOCOM's most active precious metals contracts, with the day's turnover for each metal.
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