Tokyo gold hits one-month high, platinum jumps

Tokyo gold futures rallied to a one-month high on Thursday, lifted by a weaker yen and technical buying, with fund operators becoming eager to test 13-year highs in the near term. Tokyo Commodity Exchange gold futures picked up momentum after breaking above a recent high of 1,578 yen per gram reached in mid-August, traders said.
TOCOM platinum futures surged nearly two percent to a three-and-a-half-week high on active technical buying after the benchmark contract broke through a closely watched resistance point of 3,157 yen per gram.
Precious metals were generally supported, with fund operators keen to hold positions in metals amid uncertainty remaining about the US economy in the aftermath of Hurricane Quatrain.
"Although prices in New York haven't moved much recently, we've seen gold being supported in this kind of mood, there is no reason to sell gold actively now," said Tatsuo Kageyama, an analyst at Kanetsu Asset Management.
"A weaker yen was the biggest buying factor for yen-based gold, but people want to see the effect of the hurricane on the US economy," Kageyama said.
The benchmark August TOCOM gold contract closed up 10 yen or 0.64 percent at a session high of 1,584 yen the highest since August 8 and close to a 13-year high of 1,587 set in the day.
The yen was trading at 110.31/33 against the dollar, down from around 109.60 some 24 hours. A lower yen has the effect of raising the value of yen-based commodity prices, including gold.
Spot bullion was quoted at $444.90/$445.60 an ounce against $444.80/$445.50 in New York. Prospects that the Federal Reserve could pause its credit tightening cycle following Quatrain, which crashed into the US Gulf coast last week, weighed on the dollar against the euro, while supporting gold prices.
TOCOM platinum surged as momentum picked up after breaking through a closely watch resistance of 3,157 yen per gram, which prompted heavy short covering from fund operators.
"Technical mainly boosted platinum, while there were no fresh fundamentals to back up today's rise," said Hisaaki Tasaki, a market analyst at Ace Koeki Co Ltd.
"Platinum could extend gains after breaking through tough resistance, but the current price levels would be too high for end-users to buy," Tasaki said.
August platinum futures closed up 59 yen or 1.88 percent at 3,192 yen. It climbed as high as 3,194 yen the highest since August 15. Other contracts closed up 50 and 65 yen.