The benchmark gold futures contract on the Tokyo Commodity Exchange jumped to 1,534 yen per gram on Friday, the highest since March 1992, buoyed by fund buying after a stronger finish in New York. Gold attracted renewed interest from investors, as bullion seemed to be de-linking from the euro/dollar after a tight correlation over the past few years, traders said.
TOCOM's key April gold contract surged to the loftiest level on a continuation basis since March 13, 1992, when benchmark prices rose as high as 1,556 yen.
The contract ended on Friday's session at 1,531 yen per gram, up 19 yen or 1.3 percent from Thursday's close. "Looking at the bullish performance of the New York market, players in Tokyo rushed to buy back or placed fresh buy orders for gold futures," one broker said.
Turnover of TOCOM gold traded on Friday was hefty 74,032 lots compared with 89,363 lots for the whole day on Thursday.
In New York, gold for August delivery gained $7.00 to end at $437.90 an ounce on Thursday on the New York Mercantile Exchange's Comex division, the highest settlement since April 29, on waves of broker and investment fund buying.
With bullion appreciating against a host of currencies, such as the euro and yen, some traders saw the metal emerging as a genuine investment alternative in its own right.
Spot gold continued its Bull Run to a nearly two-month high in Asian trade on Friday, buoyed by fund and speculator buying and bullion's decoupling from the dollar. Spot gold was quoted at $436.00/50 per ounce, up from the late US level of $435.80/436.50. Prices marked the highest level since April 26 at $437.15.
Bullion is expected to move between $434.50 and $438.50 during Asian trade, a Japanese trader said.
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