Tokyo gold ends mixed on New York loss, weak yen

Tokyo gold futures ended narrowly mixed on Friday, reflecting losses in New York and the yen's weakness, with trade thinned by a lack of participants from overseas amid Easter holidays. The benchmark February gold contract on the Tokyo Commodity Exchange closed one yen per gram up at 1,459 yen after trading between 1,458 and 1,460. "Operators mostly kept to the sidelines due to the closure of the overseas markets," a Tokyo broker said.
Technically, the market looks solid, as the benchmark contract has confirmed a floor around 1,450 yen in its slide from a three-month high of 1,495 yen marked on March 14, he said.
February gold is expected to fill a gap between 1,467 and 1,479 yen in the short-term, he added.
"I don't expect a sharp bounce in gold prices, given the prospect that higher US interest rates could encourage investors to shift from commodities to dollar assets," he said.
Market sentiment soured after the US Federal Reserve signalled on Tuesday it may speed up the pace of interest rate rises to counter any acceleration in inflation.
Higher interest rates tend to strengthen the dollar and thus weaken gold's safe-haven appeal.
On Thursday, Comex April gold settled 60 cents lower at $424.80 an ounce, trading between $426.50 and $424.30, which was the lowest price since February 16.
Traders said investors moved back into dollars on speculation that US interest rates could rise faster.
Spot gold was quoted at $425.00/95 an ounce, against on Thursday's New York close of $424.40/425.10.
The dollar edged up to a fresh six-week high against the euro and held near a six-week peak versus the yen on Friday, as investors expected a further boost for the currency from a buoyant US economy.
The dollar was at 106.35/39 yen, after hitting a fresh six-week high of 106.58 yen in New York.
Platinum futures extended gains on Friday, as a weaker yen and a firmer Nymex finish induced short covering.
Traders said solid spot platinum prices, supported by physical buying by Chinese buyers, also buoyed TOCOM futures.
TOCOM's benchmark February contract ended up 10 yen per gram at 2,857, after trading between 2,851 and 2,863.
Other months gained six to 16 yen. Spot platinum was quoted at $856/861 an ounce, against New York's $860/863.
Below are closing prices for TOCOM's most active precious metals contracts, with the day's turnover for each metal.