Tokyo gold futures touched a three-week high on Thursday, tracking firm New York gold futures, while traders kept a close eye on currency markets for a clue to direction. Other precious metals on the Tokyo Commodity Exchange were also lifted higher by firm New York prices.
The benchmark June gold contract on the Tokyo Commodity Exchange finished up one yen per gram at 1,535 yen, the day's low. The session high of 1,540 yen was the highest level for the benchmark contract since it rose to 1,556 yen on July 1.
Other months rose by one to three yen on Thursday.
The weak yen has helped the contract recover about 1.3 percent from a one-month low of 1,516 yen reported on July 15.
"There was some buying back when it fell, which is another factor supporting the market," a Tokyo analyst said.
He said that there was a chance that TOCOM gold might again approach 1,556 yen, the 13-year high marked on June 30 and July 1, if the Japanese currency weakened to 114 yen or 115 yen against the dollar.
The dollar was trading at around 112.67/112.71 yen at 0630 GMT, versus late US trading levels of 112.90 yen.
The US currency fell after Federal Reserve Chairman Alan Greenspan reiterated that the US economic outlook was solid but gave no clear idea how high the Fed would raise interest rates.
It had climbed to a fresh 14-month high of 113.73 yen on Wednesday.
Spot gold was fetching $422.80/$423.50 an ounce at TOCOM's closing bell, compared with $422.10/$422.80 last quoted in New York.
US gold futures closed at a one-week high on trade and speculative buying on Wednesday.
August delivery gold rose $1.90 to $422.10 an ounce on the New York Mercantile Exchange's COMEX division, it's highest settlement since July 13.
Total gold turnover on TOCOM was estimated at a healthy 40,103 lots, down slightly from Wednesday's 48,444 lots.
Elsewhere, TOCOM platinum extended gains to mark a fresh 15-month high.
Benchmark June platinum futures contract closed up 12 yen at 3,090 yen, after moving between 3,074 yen and 3,093 yen.
Spot platinum was at $873.50/$878.50, versus New York levels of $872/$875 an ounce.
Below are closing prices for TOCOM's most active precious metals contracts, with the day's turnover for each metal.