Tokyo gold futures chased New York's rally on Friday, with the benchmark contract nearing a 13-year high despite a stronger yen, as record-high oil prices and geopolitical risks renewed investor interest in hard assets.
The benchmark June gold contract on the Tokyo Commodity Exchange settled up 22 yen per gram at the day's high of 1,582, moving towards the 13-year high at 1,587 set on Monday.
"Gold advanced as the bullish mood spilled over from the oil market where prices have renewed record highs day after day," a Tokyo broker said.
"Encouraged by the rally in oil, investors have poured money into other commodities markets as well." June gold was expected to test the key 1,600 yen level next week, unless the yen climbs sharply against the dollar, as bullion would likely keep a firm tone, he said.
Spot gold was quoted at $446.60/447.40 an ounce, up from $445.30/446.10 in late New York, after hitting its highest for the year at $447 on Thursday.
In New York, Comex December gold surged $8.90 or 2 percent on Thursday to end at $450.90 an ounce, the highest on a settlement basis since March 16.
Oil prices climbed above $66 a barrel on Friday, setting a fifth record high in as many days as robust US economic growth keeps refiners straining to meet demand and friction over Iran's nuclear programme jangles nerves.
In addition to a bullish oil market, traders as reasons to buy gold cited a weaker dollar and tensions in the Middle East. A weaker dollar tends to boost gold prices because it makes dollar-denominated bullion cheaper for non-US buyers.
The dollar was stuck near a six-week low against the yen and a two-and-a-half month nadir versus the euro on Friday with investors worried about a possible sharp deterioration in the US trade deficit.
The trade report is expected to show the June trade gap swelled to $57.30 billion from $55.35 billion in May as steep oil prices boosted the cost of imports and the dollar's strength crimped demand for exports.
The dollar was up about 0.3 percent from late New York levels to around 109.90 yen but was still close to a six-week low of 109.56 yen hit in the previous session.
The euro was a touch weaker at around $1.2455 after having jumped as high as $1.2476 on Thursday.
A strike by gold miners in South Africa, the world's largest gold producer, ended as about 110,000 miners accepted an increased wage offer from producers and unions late on Thursday asked their members to resume work.
The gold market barely reacted to the first industry-wide strike in South Africa's gold sector in 18 years, as the action little affected global supplies of the yellow metal.
Gold miner AngloGold Aslant said on Friday it had lost just over one metric tonne in gold output due to the strike. In the platinum market, TOCOM's benchmark June contract closed up 39 yen per gram at 3,215, gaining support from gold's strong performance.
Last week, technically driven buying by funds pushed the June contract up to 3,254 yen, the highest for TOCOM's benchmark platinum since September 1986.
For clues to price direction, British refiner Johnson Matthew, who will be released later this month, focused traders on a report on platinum supply/demand conditions.
Spot platinum was at $920.50/925.50 an ounce, up from $912/916 in late New York.
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