Gold: 350.9
Silver: 4.85
USD: 94.77
TOCOM gold gives up gains in currency-driven trade
Wed May 14, 2003 03:15 AM ET
TOKYO, May 14 (Reuters) - Tokyo gold futures gave up early gains and headed lower on Wednesday as swirling rumours that Japan had intervened to halt the rise of its currency failed to quash expectations of a firmer yen.
A weakening spot gold price also weighed on yen-based futures as bullion lost its grip on the $350-an-ounce mark after comments from U.S. Treasury Secretary John Snow dragged the greenback up from four-year lows against the euro.
Despite Snow's reiteration that Washington's long-time commitment to a strong dollar remained unchanged, some Japanese players had little faith the yen's rise was over.
"The yen looks to be on course to get stronger," one brokerage analyst said. "Exchange rates are what it's mainly about."
Japanese authorities are thought to be keen to stop the yen rising from current levels so as not to damage exports, one of the few bright spots in Japan's economy.
But many market players believe Washington may be prepared to let the dollar weaken, or at least be reluctant to support the currency should it fall further, despite Snow's comments.
A firmer Japanese currency makes yen-based futures more expensive for local players, relative to dollar-denominated gold prices.
Benchmark April 2004 gold on the Tokyo Commodity Exchange settled down eight yen per gram at 1,306, giving up modest gains notched up at the opening, which came despite overnight losses on COMEX.
Other months shed between seven and nine yen.
Turnover was estimated at an unremarkable 88,122 lots or 88 tonnes, down from Tuesday's 119,901 lots.
Spot gold drifted as low as $348.80 an ounce in Asia after popping briefly above $350, hit by the dollar's small gains against the yen and euro.
It was fetching $348.65/349.15 at TOCOM's close, down from $349.65/350.40 last quoted in New York.
The dollar was fetching 116.57/59 yen at 0630 GMT, against a session high of 116.85 yen and 116.58/63 yen at the same time on Tuesday.
Platinum futures scrabbled mostly higher, reversing significant losses in the morning as tighter lease rates and speculative buying boosted spot prices.
Benchmark April 2004 platinum settled up 25 yen per gram at 2,265, having slid as low as 2,215.
Sister metal palladium ended mixed. April 2004 gained seven yen per gram to 598.
Silver followed gold lower, with April 2004 losing 0.8 yen per 10 grams to 180.4.
reuters.com |
