Tokyo gold up on New York, platinum slips further

Tokyo gold futures rose on Monday, drawing strength from New York's higher close and firm bullion prices, while platinum mostly slipped as traders adjusted their positions ahead of the year-end. The benchmark October 2005 gold contract on the Tokyo Commodity Exchange (TOCOM) finished up five yen per gram at 1,484 yen, just one yen above the day's trough. The session high was 1,487 yen.
Other months rose by three to six yen. A Tokyo-based analyst said players would continue watching currency market movements for a clue to TOCOM gold's direction.
This was likely to mean a slow market, however, as the currency market was essentially in holiday mode. "TOCOM gold is likely to be mostly in a wait-and-see mood for the time being unless it's hit by some unexpected news," he said.
US gold futures closed higher on Friday as a soft dollar raised the metal's allure among global investors. February futures at the Comex division of Nymex rose $4.70 to $442.90 on ounce, after moving from $437.20 to $443.60.
In the spot market, gold held steady in a narrow range in thin trade ahead of the year-end holiday season.
A fall in fund's long positions in New York helped ease year-end selling pressure, but gold was likely to hover in a tight $5 an ounce range until the end of the year, dealers said.
Spot gold was fetching $441.25/2.00 an ounce, compared with $440.90/1.65 last quoted in New York. In other precious metals, palladium was soft in technical selling rather than any major change in the fundamental supply and balance situation, the analyst said.
"I expect to see the kind of choppy trade typical of the market at the end of the year easily moving in either direction due to technical factors," the analyst said. October TOCOM palladium was at 599 yen per gram, down four yen.
It briefly dropped to 586 yen, a fresh 19-month low. Spot palladium was at $176/181 an ounce, compared with $176.50/182.50 in New York.
In the currency market, the dollar inched up against the yen in thin trade on Monday, although much of the momentum from last week's gains was lost as the market saw no end to the US currency's weakening trend.
With the market essentially in holiday mode, traders did not expect any major currency movements in coming days.