Tokyo platinum slips

Tokyo platinum futures retreated from a 2-1/2 month high on Wednesday, yielding to profit-taking after spot metal prices failed to sustain the $880 an ounce level and a major platinum producer reported an output increase. The December platinum futures contract on the Tokyo Commodity Exchange finished eight yen per gram lower at 2,858, falling from a 2-1/2 month high of 2,887 yen set on Tuesday. Other months lost four to 11 yen.
The market lost momentum after spot platinum prices retreated to $876 an ounce in the London afternoon fixing on Tuesday from the fixing at $881. "Profit-taking emerged as prices reached the upper end of the range projected by Johnson Matthey," a Tokyo broker said.
British precious metals refiner Johnson Matthey forecast in a report issued last November that platinum would trade between $760 and $880 over the next six months.
TOCOM participants also became cautious about buying platinum after Lonnie Plc, the world's third largest platinum producer, reported a 4.9 percent jump in refined platinum output for the quarter to December 2004, despite a smelter accident.
Lineman produced 149,066 ounces of platinum in the quarter compared to 142,160 ounces in the same period of 2003. Expectations that demand from China, the world's largest platinum consumer, would dwindle due to the Lunar New Year holiday this month also made operators cautious.
TOCOM platinum rallied this week as the market's technical strength prompted speculative buying by overseas operators and stop-loss orders from local investors.
Spot platinum was quoted at $875/880 an ounce, compared with $873.50/878.50 in late New York on Tuesday. In the gold market, trade remained thin as many operators kept to the sidelines before a series of major financial events that could set the direction for the dollar and bullion prices.
TOCOM's benchmark December gold contract lost one yen per gram to 1,412. Other months were flat to two yen down. Spot gold was quoted at $421.40/422.20 an ounce, steady from Tuesday's New York close of $420.80/421.60.
The dollar was at 103.75/78 yen, little changed from late US levels. The dollar shuffled in ranges on Wednesday as traders wondered if the Federal Reserve would signal an increase in the pace of policy tightening when it announces an expected interest rate rise later in the day.
The Fed statement is due after the meeting of the policy setting committee, the first of a series of closely watched events this week that includes US jobs data and a meeting of the Group of Seven (G7) economic powers.
Below are closing prices for TOCOM's most active precious metals contracts, with the day's turnover for each metal.