Tokyo gold futures advanced for a fourth consecutive session to a one-week high on Thursday as market sentiment turned more bullish on continued yen weakness. The benchmark platinum contract on the Tokyo Commodity Exchange rallied as high as 3,123 yen per gram - the highest since April 20, 2004 - as fund operators bought actively, reflecting the metal's bullish technical tend.
"The market is keen to test gold higher as positions in the market are seen relatively light now," said Hiroyuki Kikukawa, associate director at Nihon Unicom Corp.
The June TOKYO gold contract closed up 5 yen or 0.33 percent at a session high of 1,540 yen per gram - its highest since July 21.
The contract faced active profit-taking as it approached highs but the market was keen to test key levels, traders said.
"Sentiment could turn stronger if it breaks through 1,540 yen," Kikukawa said.
Other gold contracts closed 4 to 5 yen higher.
The TOKYO precious metals have been supported by a weaker yen.
The yen was off its recent lows against the dollar but continued to struggle around 112.60 in late Asian trade. The yen is more than 2 percent below a high of about 109.85 yen reached shortly after China revalued the yuan last week.
A weaker yen raises the value of yen-based commodities.
As of 0754 GMT, spot bullion was at $424.30/$425.10 an ounce against $424.50/$425.20 in late US trade.
Gold rose in the US market on Wednesday after the dollar failed to rally on unexpectedly strong US durable goods data.
Tokyo traders said gold could also be supported on views that hedge funds could shift back into gold as they are not fully convinced about the dollar's outlook and because of recent weakness in US Treasuries prices.
Still, the dollar is the key market driver for gold, with metal traders awaiting the release of US second-quarter gross domestic product data on Friday for clearer direction.
Rounds of follow-through buying led by fund operators pushed TOKYO platinum to fresh 15-month highs.
Continued thinness in the market could be exaggerating the uptrend but the key platinum contract was seen testing the next major resistance, traders said.
"After finding solid support at 3,064 yen, funds became convinced about buying," Kikukawa said.
"The market is very keen about testing the next key resistance at 3,127 yen," he referring to the previous high reached on April 19 and 20 last year.
June platinum closed up 26 yen or 0.84 percent at 3,118 yen per gram.
All other contracts closed up 20 to 26 yen.
Comments
Comments are closed.