Platinum was little changed in the post-Christmas holiday trade on Wednesday, but remained near a record high as supply worries drew buying interest. Spot gold edged higher in a thin trading from late Asian trade on Tuesday, buoyed by firmness in Japanese futures prices and in oil prices.
"Platinum is capped as Tokyo prices are being pressured by profit-taking, but underlying sentiment remains bullish," said Tatsuo Kageyama, analyst at Kanetsu Asset Management in Tokyo.
"I think the outlook for gold looks bullish and it also has more room to rise. More fund inflows are expected to emerge after investors return from holidays and after the start of the New Year," Kageyama said. Cash gold was trading at $810.70/810.50 an ounce, up from $806.70/807.50 late in Asia the previous day. But it was down from $812.30/813.10 late in US trade on Monday. London participants and US were away for the Christmas holiday on Tuesday.
Comex gold futures fell in Asia from their settlements in New York on Monday. The most active February contract was trading down 0.2 percent at $814.70 from Monday's New York settlement of $816.50.
Benchmark TOCOM gold futures closed the session at 2,999 yen per gram, up 13 yen or 0.4 percent from Tuesday's close. The key TOCOM gold contract rose to an intraday high of 3,002 yen the highest since November 9. The weakness in the yen against the dollar and firmness in energy prices bolstered TOCOM gold futures.
Key US crude oil futures stood above $94 a barrel on Wednesday, although Mexican export terminals reopened following a cold front that had helped fuel pre-holiday gains.
US light sweet crude for February delivery was 19 cents higher at $94.32 a barrel after gaining 82 cents on Monday. Trading volumes remained particularly thin with only 185 lots of the front-month contract trading. Firmness in platinum provided overall support to the precious metals market.
Cash platinum was little changed at $1,518/1,523 an ounce from late Asian level of around $1,515/1,525 but down from a record high of $1,526/1,530 per ounce reached late in US trading on Monday.
Supply disruptions at some mines in South Africa, the world's top producer, have resulted in a deficit this year and are likely to leave the market in a deficit again next year. Platinum lease rates stayed at high levels above 10 percent, traders said. The lease rates usually rise whenever there is shortage in physical supply.
Key TOCOM platinum for December 2008 closed the trade at 5,341 yen a gram, down 9 yen or 0.2 percent from Tuesday. On Tuesday, the TOCOM platinum contract hit a record high of 5,354 yen. "The market is in a profit-taking mode after it hit a record high yesterday," Kageyama said.
"We only have two-and-a-half more days left for this year so the market will refrain from trading actively ahead of the holidays." Tokyo financial markets will be closed between December 31 to January 3. TOCOM will end trading for this year at the mid-session on Friday. Palladium was little changed at $357/362 an ounce. Silver edge higher at $14.49/14.56 an ounce from late Asia on Tuesday, but it was slightly lower from Monday's late US level of $14.52/14.57.
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