Tokyo platinum futures rebounded on Monday as short-covering accelerated in late trade on a softer yen and amid perception that the market had been oversold recently.
Gold futures gained moderately, buoyed by yen-driven buying. Prices were also lifted by soaring energy futures in Tokyo, which rekindled concerns over inflation and renewed interest in gold, which is seen as a hedge against inflation.
Benchmark June 2005 platinum on the Tokyo Commodity Exchange (TOCOM) ended up two yen per gram at 2,602, after moving between 2,580 and 2,607. Other months rose one to three yen.
The June contract has gained 55 yen or 2.2 percent since it had hit the seven-month low of 2,547 yen last Tuesday.
One broker said TOCOM benchmark platinum had the potential to rebound to 2,672 yen this week, regaining about one-third of its slide from the June peak of 2,923 yen to the bottom of 2,547.
"The market was in a corrective phase after last week's sell-off. But underlying sentiment remained weak," he said.
Sentiment has weakened as TOCOM platinum broke below a series of important technical levels in recent weeks, with the benchmark distant contract falling far from a 16-year high of 3,127 yen recorded just less than three month ago.
Physical buying was not so strong despite recent price falls, which also disappointed TOCOM participants, brokers said.
Platinum demand for jewellery fabrication, especially in China, has been hit hard by the metal's rally to a 23-year high earlier this year, they said.
Spot platinum was quoted at $781/786 an ounce at 0630 GMT, compared with Friday's New York close of $776/780.
The dollar was at 108.65/70 yen at 0630 GMT, up from 108.35 yen in late New York. It fell as low as 108.05 yen over the weekend on disappointing US jobs report.
In the gold market, TOCOM benchmark June contract settled up five yen per gram at 1,391, with other months gaining two to seven yen.
Spot gold was quoted at $397.55/398.05 an ounce at 0630 GMT, against $397.55/398.30 in late New York on Friday.
Trade was confined to a tight range as the US market is shut on Monday for the Independence Day holiday.
Below are closing prices for TOCOM's most active precious metals contracts, with the day's turnover for each metal.