Tokyo gold hovers around 13-year high as yen falls

Tokyo gold futures finished higher on Friday, buoyed by the yen's fall to a nine-month low against the dollar, but gains were moderate due to an easier spot market and ahead of a three-day weekend in the United States. The benchmark June 2006 gold contract on the Tokyo Commodity Exchange settled up four yen per gram at 1,555, one yen below the day's high at 1,556, which matched the 13-year high set on Thursday.
Other months were one to three yen higher at the close. The market opened weaker, tracking losses in New York, but soon bounced back as short covering was spurred by the dollar's rise beyond 111 yen.
"Upward momentum was not so strong as there were no other bullish incentives other than the currency," a Tokyo broker said.
The market was heavy at the topside as operators were eager to take profits before a long weekend in the United States, where Comex trade will be shortened on Friday and the market is closed for the Independence Day holiday on Monday.
Spot gold was quoted at $434.50/435.00 an ounce, falling from $437.20/90 in late New York pressured by the dollar's rally following US interest rate rise. The dollar rose as high as 111.13 yen on Friday after the Federal Reserve signalled more interest rate rises were likely ahead, which would further widen the US currency's rate advantage over its rivals.
The Federal Open Market Committee lifted rates by a quarter-percentage point to 3.25 percent, its ninth such move in the past year, and repeated that it would keep removing its accommodative policy at a "measured" pace.
The Japanese currency failed to benefit from a surprisingly upbeat tankan survey showing resilient business confidence in the economic outlook and stronger-than-expected plans to boost capital spending in coming months.
The dollar bought around 111.03 yen, against the late US level of 110.93 yen.
Platinum futures also advanced on yen-inspired buying.
TOCOM's benchmark June platinum contract ended up four yen per gram at 3,039 after moving between 3,032 and 3,042. Spot platinum was quoted at $879/883 an ounce, down from $880/883 in late New York.
Below are closing prices for TOCOM's most active precious metals contracts, with the day's turnover for each metal.