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  • Nov 11th, 2005
  • Comments Off on Tocom gold hits new 14-year high on Jordan attacks
Tokyo gold futures leaped to a new 14-year peak on Thursday on safe-haven buying and a rally in platinum, which hit fresh record highs for a second straight day.

Suspected suicide bombings that hit three hotels in Jordan on Wednesday, killing at least 57 people, once again raised gold's profile as a safe-haven investment, traders said. "Gold is being supported by the latest bombing incident, as you don't want to get caught short now," a Tokyo analyst said.

He also said hedge funds were chasing gold.

"These factors and platinum's strength are together working to lift gold," the analyst said.

The benchmark October gold contract on the Tokyo Commodity Exchange closed at 1,774 yen, up 17 yen, after rising as high as 1,779 yen, its loftiest since June 1991.

The trough was 1,770 yen. Other months closed up 16-20 yen.

Spot gold was fetching $465.90/$466.50 an ounce at TOCOM's closing bell, compared with $466.20/$467.00 last quoted in New York.

TOCOM platinum was trending further into uncharted waters as funds chased the metal, a crucial component in anti-pollution systems for motor vehicles.

Demand for platinum and palladium, both also used for jewellery, was expected to remain strong from the industrial sector due to strict global emissions laws.

Benchmark October platinum futures closed up 31 yen per gram at 3,578 yen, after rising as high as 3,592 yen. On Wednesday, the contract sprinted past the previous record of 3,520 yen, marked in September 1986, to its highest level since it was launched in 1984.

Traders were also awaiting the release of London-based precious metals refiner Johnson Matthey Plc's interim report on November 15.

In New York, platinum futures rose to a 26-year high on Wednesday as funds piled on bets that growing commercial demand for platinum group metals would keep prices rising.

January platinum at the New York Mercantile Exchange rose $12.50, or 1.3 percent, to $956.20 an ounce. In the currency market, the dollar shuttled in narrow ranges near two-year highs against the euro and the yen, as dealers awaited trade figures to provide short-term direction for the US currency.

The dollar was fetching 117.75/117.80 yen at 0630 GMT, against 117.55/117.57 yen in late New York trade.

The dollar has gained about 7 yen in the past two months.

Copyright Reuters, 2005


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