Yen-based platinum prices on the Tokyo Commodity Exchange (TOCOM) advanced in most contracts, with the key contract rising above 2,900 yen per gram after seeing solid bargain hunting around recent lows, they said.
The benchmark TOCOM gold contract closed 11 yen per gram higher at 1,436 yen. It had moved in a range of 1,435 to 1,440 yen. Spot bullion was quoted at $406.25/6.95 an ounce against $407.25/8.05 in New York on Wednesday.
"Basically, gold prices have been supported by the yen's weakness and safe-haven buying is also supporting gold since the plane crashes," said a trader at Japanese bullion house said.
Russia's top investigator said terrorism, human error or mechanical mishap could explain why two aircraft crashed minutes apart on Tuesday, killing all 89 people on board the planes, after they had taken off from the same airport.
A spokesman for the main rebel group in Chechnya, where Russia has been battling separatists for almost a decade, denied responsibility. The greenback's rise above the 110 yen level has also given psychological support to yen-based precious metals, traders said. Platinum rose in line with the strength of gold prices.
"Platinum has fallen sharply since hitting highs above 3,000 yen and $880, but we've also see it find solid support," said Shoji Seagate, assistant manager at Mitsubishi Corp Futures Ltd.
Seagate said the market has detected some physical buying by end-users around lows, which has also supported sentiment and limited active follow-through selling.
Key platinum had hit a four-month high of 3,011 yen last week, but fell as low as 2,841 yen on Monday.
Traders said end-users such as glassmakers and auto companies were seeking bargain-hunting chances, but they appeared to be reluctant to buy on rallies. Instead of buying actively in the physical market, some end-users could be tapping the lease market, resulting in lease rates being pushed up slightly.
Traders said the one-month lease rate edged up to around 4.5 percent from about 3.0 percent a month ago. The benchmark June TOCOM platinum contract closed up 26 yen per gram at 2,910 yen.
Spot platinum was quoted at $848/$853 per ounce against on Tuesday's US close of $847/$850. "Technically, platinum is bullish, but without strong physical buying by end-users the topside should be limited," Mitsubishi's Seagate said.
Below are closing prices for TOCOM's most active precious metals contracts, with the day's turnover for each metal.