Gold held steady on Monday after rising more than $2 an ounce the previous session, while a weaker yen lent support to yen-based futures prices in Tokyo, with the most active platinum contract hitting a record high. Spot gold was at $653.05/653.65 an ounce, compared with $653.60/655.10 late in New York on Friday.
Cash platinum fell slightly to $1,293/1,298 an ounce from $1,296/1,301 late in New York on Friday, when it rallied to a two-week high of $1,301 on the risk of supply disruptions in South Africa.
Benchmark platinum futures on the Tokyo Commodity Exchange, currently April 2008, rose as high as 5,117 yen a gram, exceeding the previous record of 5,099 yen marked last week.
The contract closed up 28 yen or 0.6 percent at 5,110 yen. Key April 2008 gold futures on TOCOM finished up 3 yen per gram to 2,627 yen, after moving between 2,622 yen and 2,632 yen.
"A weakening yen has been driving the Tokyo market higher," said Hitoshi Inageya, senior manager at Yutaka Shoji Co Ltd. "The market's prospects depend on the currency market. The prices of cash platinum or gold don't seem to have a clear direction," he said, adding that gold has a firm support at $640 an ounce and platinum at $1,280 an ounce.
The dollar was little changed from late US trading at 123.86/123.88 yen, but in sight of 124.14 yen hit on Friday, the highest level since December 2002. The yen was pinned near a 4-1/2 year lower against the dollar and an all-time trough versus the euro on Monday, staying under pressure as investors kept selling the low-yielding currency in carry trades. Last week, a South African trade union threatened to declare a dispute with the world's third-biggest platinum producer, Lineman Plc, about working overtime.
This represents the first legal step towards going on strike. April TOCOM silver was at 522.8 yen per 10 grams, down 1.4 yen. Spot silver was at $13.02/$13.05 an ounce versus $13.04/$13.08 in New York. April TOCOM palladium closed up 1 yen at 1,515 yen per gram. Spot palladium was at $374/$378 an ounce, compared with $373/$377 in New York.
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