Tokyo gold edges higher

15 Feb, 2004

Tokyo gold futures mostly inched up on Friday in a reflection of strong Comex gold prices, which continued to draw strength from the view that the Federal Reserve was comfortable with a weak dollar.
The benchmark December 2004 gold contract on the Tokyo Commodity Exchange settled up four yen per gram at 1,398 yen, one yen below the day's high.
The day's low was 1,396 yen. Other months rose by one to six yen, with the exception of the June contract, which finished down one yen.
"Funds have been buying in overseas markets and the overseas markets' strength is supporting the market here," a Tokyo analyst said.
Comex gold in New York rose to a 15-day high on Thursday as the yellow metal continued to benefit from investors' perception that the Federal Reserve was in no rush to raise interest rates and saw little harm in a weak dollar.
Fed Chairman Alan Greenspan repeated to the Senate Banking Committee on Thursday his prepared speech on Wednesday to House members, which financial markets interpreted as a green light to resume the dollar disinvestment that lifted gold to a 15-year peak last month.
Total gold turnover on TOCOM was estimated at a moderate 72,436 lot, or about 72.4 tonnes, down from Thursday's 105,496 lots.
In the spot market, bullion was fetching $412.70/413.50 an ounce at TOCOM's closing bell, compared with $411.75/412.50 last quoted in New York.
The dollar was fetching 105.36/41 yen, against 105.31/39 yen at about the same time on Thursday.
Below are closing prices for TOCOM's most active precious metals contracts, with the day's turnover for each metal.

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