Tokyo gold down by weak oil

Tokyo gold futures fell modestly on Monday after failing to break above a closely watched technical level as a firmer yen and falling oil prices prompted selling by speculators in a lightly traded market.
Tokyo precious metals were unable to materialise the gains made in dollar-based prices, which rose on Monday from late New York levels, as Tokyo market lacked liquidity with the US market closed for the Labour Day holiday.
"Gold was locked in a tight range, but for today the weakness in energy prices is the major reason weighing on domestic gold prices," said Shoji Sugata, assistant manager at Mitsubishi Corp Futures and Securities Ltd. The benchmark August gold contract on the Tokyo Commodity Exchange closed at 2,377 yen a gram, down 10 yen or 0.4 percent, from Friday.
It had moved in a range of 2,372 to 2,385. Other gold contracts closed down five to 14 yen. TOCOM gold lost momentum after failing to climb through 2,400 yen for the first time since August 11.
On Friday, the key August TOCOM contract reached a three-week high of 2,395 yen. But technical sentiment for August TOCOM gold appeared to look relatively bullish as it closed above its nearest technical support of 2,373 yen, which is the 30-day moving average.
Cash gold firmed on Monday on the back of a weaker dollar. Spot gold was trading at $626.50/627.50 an ounce, up from $624.85/625.85 late in New York. Some dealers expected demand for gold from jewellers to pick up soon ahead of the holiday season later this year.
A slightly weaker dollar has supported dollar-denominated prices. Dollar-based silver rose to its highest level in more than three months on Monday due to good demand for a silver exchange-traded fund launched on the American Stock Exchange in late April. Silver has rebounded more than 30 percent since falling to a four-month low of $9.38 an ounce in mid-June. Silver hit a high of $12.96 an ounce, it's highest since May 31 when it rose as high as $13.10 an ounce.
The metal was quoted at $12.91/12.96 an ounce, slightly higher than $12.89/12.96 late in New York on Friday. But TOCOM silver futures edged down across the board, tracking falls in other yen-based metals and reflecting a firmer yen against the dollar.