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Gold ends on firm

note in Tokyo

TOKYO: Yen-denominated gold and platinum futures ended higher on Monday due to the yen's weaker tone against the dollar, traders said. Activity remained lacklustre.

Gold futures ranged from one to four yen per gram firmer. Benchmark February was up one at 1,358.

The Tokyo gold futures market failed to respond much to news of tensions in Korea's demilitarised zone, but traders said concern over the North Korean situation may lend support to the spot gold market overseas.

Spot gold was quoted at $394.60/395.10 per ounce, against $394.15/394.45 at Friday's Tokyo close.

The focus is on movement of the U.S. stock market later on Monday. "It is widely anticipated that U.S. stocks will be sold today as hopes for U.S. interest rate cuts are receding due to higher-than-expected March U.S. jobs data," said a senior trader at a foreign bank. "We are watching for any sign of fund money flowing into the gold market if stocks fall as expected overnight," the trader said.

He said gold may test the support of $396 per ounce soon.

Platinum futures held on to early gains to end firmer. They ranged from five to eight yen per gram firmer, with benchmark February ending up five at 1,407.

Silver and palladium futures ended mixed in sluggish trade.

Palladium traders said Japan's palladium market still faced a oversupply with high domestic stockpiles, and private investors' interest in palladium futures remained thin.

Palladium futures ranged from one yen per gram lower to three firmer, with benchmark February ending up one at 478.

Silver futures ranged from 0.5 yen per 10 grams lower to 2.4 firmer. Benchmark February finished up 0.2 at 190.2.-Reuter