Tokyo gold futures dipped to a fresh four-month low on Friday, reflecting losses in the spot market amid the dollar's rebound against the euro, brokers said. The December 2005 gold contract on the Tokyo Commodity Exchange (TOCOM) slid as low as 1,403 yen, the lowest for TOCOM's benchmark gold since September 8. At the close it was down seven yen at 1,404, with other months losing six to 11 yen.
"Buying interest in TOCOM was weak because bullion prices were capped," a Tokyo broker said. Spot gold was quoted at $422.60/423.10 an ounce, down from $424.35/425.10 in late New York.
A higher dollar against the euro is negative for dollar-based gold prices, as bullion becomes more expensive for European investors. A stronger dollar also weakens the safe-haven appeal of the yellow-metal.
The broker also said TOCOM participants were concerned about the yen's further rise against the dollar, after the European Central Bank (ECB) said Asian currencies needed to appreciate.
It hit a five-year low of 101.83 yen in December. The dollar jumped against the euro on Friday, building on overnight gains made after the ECB reiterated that Asian currencies should be more flexible, taking pressure off the single currency to climb.
ECB President Jean-Claude Trichet indicated on Thursday that the consensus within the Group of Seven industrial powers was that emerging Asian currencies needed to appreciate.
In the platinum market, the benchmark December contract closed down five yen per gram at 2,760, after trading between 2,749 and 2,773.
Other months lost six to 10 yen. Spot platinum was quoted at $857/862 an ounce, little changed from $857.50/862.50 in late New York. Brokers said TOCOM platinum needs fresh fundamental incentives to get out of the 2,700-2,800 yen range, where the market has been stuck since December 13.
Below are closing prices for TOCOM's most active precious metals contracts, with the day's turnover for each metal.
Comments
Comments are closed.