Benchmark Tokyo platinum futures soared to a record high on Wednesday as bullish technicals and the view that brisk global economic growth would keep demand strong prompted active buying by fund operators.
"Platinum doesn't have a new fundamental factor of its own, but there is a strong perception that a healthy global economy will keep demand for platinum strong," said Takashi Ogura, manager at Kanetsu Asset Management.
"We haven't seen active sellers, while fund operators were buying repeatedly, which kept the market supported."
The benchmark October platinum contract closed up 59 yen, or 1.7 percent, at 3,547 yen per gram, just 1 yen short of the day's peak.
The contract sprinted past the previous record of 3,520 yen, marked in September 1986, to its highest level since it was launched on the Tokyo Commodity Exchange in 1984.
The day's trough was 3,495 yen.
Other contracts were up 52 to 62 yen.
Platinum is used mainly for jewellery and as an auto catalyst to clean car exhaust fumes.
Traders said the strong performance of Japanese stocks and the view that Japan's economy was on the mend also buoyed platinum.
"There is some speculation that jewellery demand will be strong as we near the end of the year," one analyst said.
Spot platinum was at $947/$951 at TOCOM's close, up from New York levels of $937/$942 an ounce.
The bull run touched all TOCOM precious metals.
TOCOM gold rebounded on short-covering after recent losses, with plenty of retail players hunting for the yellow metal on dips.
Firmness in the dollar-based spot price also supported TOCOM prices.
Key October gold closed at the day's peak of 1,757 yen, up 18 yen. The day's trough was 1,747 yen.
Spot gold was up at $462.50/463.25 per ounce, up from $461.20/462.00 in New York on Tuesday, when it rose more than $2.
In the currency market, the dollar held near two-year highs against the yen, with analysts expecting the US currency's rally through key technical levels to spur more gains in coming days.
The dollar was fetching 117.34/117.38 yen at 0630 GMT, against 117.24/117.27 yen in late New York trade.
It reached 118.38 yen on Monday, its highest since August 2003.