Tokyo gold futures touched their highest level in more than two weeks on Monday, tracking both New York gold, which finished last week at a 16-year peak, and firm bullion prices. The October gold contract on the Tokyo Commodity Exchange (TOCOM) rose as high as 1,479, the highest for a benchmark contract since the 1,480 on October 21. It closed up 12 yen per gram at 1,476 yen, just above the day's low of 1,474 yen.
Other months rose by 9-15 yen. "Faced with a weak dollar gold is likely to remain popular with investors wanting to put their money in a safe asset," a Tokyo analyst said. Demand for gold among retail consumers was also strong, and the precious metal was likely to be bought on any dip, providing further support, he added.
December delivery gold rose $3.50 an ounce in New York on Friday, to settle at $434.30, the highest price for a benchmark futures month since July 1988. Spot gold was at $434.80/5.30 an ounce, compared with $433.25/434.00 in New York on Friday.
Bullion climbed to a 16-year high in Asia on Monday after the dollar dropped to a record low against the euro, making dollar-priced gold cheaper for holders of other currencies.
The dollar hit an all-time low of around $1.2986 per euro in late Tokyo trade, after it marked a low of $1.2973 in New York on Friday despite data showing a surprising increase in the number of new US jobs created in October. Against the Japanese currency it slipped to a seven-month low of 105.33 yen. The dollar was fetching 105.45/5.48 yen at TOCOM gold's close, under pressure on concerns over the bloated US current account deficit, and traders said the dollar was likely to suffer further losses.
Attention was focused on Wednesday's meeting of the US Federal Reserve's policy-making committee, which is widely expected to raise short-term interest rates by 25 basis points.
TOCOM platinum was also bought across the board supported by firm demand for the metal, which is used mainly for jewellery and as an auto catalyst to clean car exhaust fumes.
Britain's Johnson Matthey Plc, the world's top distributor of platinum and related metals, is expected to release a supply and demand forecast next week. The benchmark October platinum futures contract closed up 8 yen at 2,802 yen per gram after moving between 2,795 yen and 2,813 yen. Spot platinum was at $847/852, largely flat from New York levels of $846/851 an ounce.
Total gold turnover was estimated at 57,430 lots, up slightly from Friday's 55,568 lots.
Below are closing prices for TOCOM's most active precious metals contracts, with the day's turnover for each metal.