Tokyo gold futures firmed on Wednesday after gains in New York as the yen's steep rise against the dollar made local investors wary of chasing the rally.
The benchmark August gold contract on the Tokyo Commodity Exchange (TOCOM) ended up five yen per gram at 1,468, after trading narrowly between 1,466 and 1,470.
"Activity was very quiet as investors stayed on the sidelines due to caution about the yen's strength," a Tokyo broker said.
A higher yen puts a downward pressure on yen-denominated gold prices and could bring losses to long position holders on TOCOM.
The contract is expected to move within the 1,450-1,500 yen range for the rest of the week, taking a cue from the currency and oil market, brokers said. Spot gold was quoted at $420.00/75 an ounce, compared with Tuesday's New York close of $420.10/60.
Platinum futures finished firmer on Wednesday, offsetting losses from a weaker Nymex finish. The market turned to positive territory in the afternoon in tandem with gains in the spot market, brokers said.
Trade was thin amid a lack of fresh fundamental incentives after a strike at South African platinum mines ended last week. TOCOM's benchmark August platinum contract closed up 18 yen per gram at 2,881.
Other months gained three to 15 yen. Spot platinum was quoted at $842/847 an ounce, up from $835.50/840.50 in late New York. Below are closing prices for TOCOM's most active precious metals contracts, with the day's turnover for each metal.