Tokyo gold futures fell on Wednesday as investors awaited US economic data and on profit-taking after the New York market had slipped from a 16-year peak, with no support from the currency market. The benchmark October gold contract on the Tokyo Commodity Exchange (TOCOM) ended down four yen per gram at 1,497. Other months were two to six yen lower at the close.
On Tuesday, the benchmark contract had risen as high as 1,503 yen, equalling the 12-year high marked on October 6.
But operators were shy of testing the level on Wednesday due to caution that an overbought Comex market was ripe for correction. A string of US economic data due for this week also made TOCOM participants wary of taking fresh positions.
"The market is unlikely to move much from the current levels for the rest of this week, as operators are reluctant to trade actively before on Friday's US jobs report," a Tokyo broker said.
Spot gold was quoted at 451.75/452.50 an ounce, compared with Tuesday's New York close of $450.50/451.25. Gold has been buoyant, as investors have shifted money to the safe-haven metal from dollar-based financial assets amid the dollar's downward trend, traders said.
But market players are turning their attention to a slew of data releases in the US this week, including manufacturing data on Wednesday and the monthly payroll report on Friday. If the reports reinforce expectations for the Federal Reserve to steadily lift US benchmark rates, the dollar could receive some support, some traders and strategists said.
Comex gold closed down from a 16-1/4-year peak on Tuesday as speculative liquidation pressured the overbought market.
Closely watched Commitments of Traders data from the Commodity Futures Trading Commission showed the speculative net long positions in Comex gold futures rose to 138,632 contracts as of the November 23 week from 123,001 lots on November 16.
In the currency market, the dollar was at 102.76/79 yen, down from 103.08 in late US trade but off the four-and-a-half year low of 102.15 yen hit on Friday. TOCOM platinum futures advanced on Wednesday tracking up Nymex gains.
But they soon reversed course, pulled down by yen-inspired selling. The benchmark October platinum contract ended down 19 yen per gram at 2,778, after trading between 2,773 and 2,808.
Other months lost one to 20 yen. Spot platinum was at $865.00/870.00 an ounce, steady from $865.00/869.00 in late 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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