Tokyo gold edges up on Comex gains, soft yen

Tokyo gold futures rose on Monday on gains in New York and a soft yen against the dollar, but momentum was weak with operators reluctant to trade actively amid holidays in the United States and Britain. The benchmark April gold contract on the Tokyo Commodity Exchange settled up four yen per gram at 1,460, after trading narrowly between 1,458 and 1,461. Other months were four to six yen higher at the close. "The market climbed in trade buoyed by the dollar's rise above 108 yen. But it soon lost momentum as the currency market stabilised," a Tokyo broker said.
Activity was quiet as public holidays in New York and London on Monday dampened trading interest in TOCOM.
The April gold contract was unlikely to break out of the recent range of 1,445-1,465 yen for the rest of the week, with the focus on a series of US economic indicators, the broker said.
Traders were eyeing reports this week on US manufacturing and the labour market to judge the economy's strength and the likelihood of more credit tightening by the Federal Reserve.
Sentiment for gold is weak, as investor interest has shifted from commodities to dollar-based financial assets due to the Fed's steady lifting of interest rates.
Spot gold was quoted at 419.10/60 an ounce, down from $419.80/420.30 in late New York. Bullion came under pressure as the euro skidded more than half a cent against the dollar on Monday after France soundly rejected the European Union constitution in a referendum, throwing doubt over the political future of the bloc.
A stronger dollar makes dollar-denominated bullion more expensive for non-US buyers, while weakening bullion's appeal as an alternative investment to dollar-based financial assets.
The euro fell as low as $1.2510 from around $1.2580 in late New York trade on Friday. In the French referendum on Sunday, the "No" vote garnered 55 percent, much higher than most polls had suggested.
While the outcome was not expected to jeopardise the monetary union underpinning the euro zones single currency and the European Central Bank, analysts said it did raise questions about public support behind the EU and future integration.
In the platinum market, TOCOM's benchmark April contract ended up nine yen per gram at 2,902, tracking Nymex gains on Friday. Other months were up five to 13 yen.
Spot platinum was quoted at $860/865 an ounce, little changed from $861/865 in late New York. Below are closing prices for TOCOM's most active precious metals contracts, with the day's turnover for each metal.