(Updates to TOCOM close, adds comments)
By Chikafumi Hodo
TOKYO, Feb 7 (Reuters) - Platinum advanced to a record high
on Thursday as concerns over supply problems in South Africa
attracted strong demand from investors, with a 3 percent rise in
Tokyo platinum futures providing upward momentum.
The benchmark platinum futures contract for December delivery
<0#JPL:> on the Tokyo Commodity Exchange soared beyond the
closely watched 6,000-yen level to a record high of 6,016 yen a
gram.
Firmness in platinum prices boosted cash gold <XAU=> by
nearly 1 percent to $908 an ounce, but the spot market was fairly
thin as many Asian market participants were away for the Lunar
New Year holiday.
Cash platinum <XPT=> hit a record high of $1,835 an ounce,
breaking through the previous all-time high of $1,819 hit on
Wednesday.
As of 0907 GMT, cash platinum <XPT=> was trading at
$1,833/1,840 an ounce, from $1,810/$1,815 late in New York on
Wednesday.
"Platinum is bullish as all focus is on supply worries in
South Africa with power cuts and floods and so on," said Shuji
Sugata at Mitsubishi Corp Futures and Securities in Tokyo.
"Concerns over supplies have been keeping lease rates at high
levels and providing overall support."
The white precious metal has been drawing huge fund inflows
since the start of the year, sending it up by more than 20
percent.
South Africa's government appealed to mining companies for
help in cutting power consumption on Tuesday to ease a power
crisis caused by the failure of electricity generation to match
economic growth. []
"You simply cannot sell platinum in this condition. The
market was convinced after seeing platinum being well-supported
around $1,750-$1,760 this week," said a senior trader at a
Japanese trading house.
Japanese investors have been flocking into the market,
although they were careful about building up new buy positions.
The December TOCOM platinum contract closed up 182 yen, or
3.1 percent, at 6,013 yen.
Open interest in TOCOM platinum was at 71,599 contracts on
Wednesday, down about 26 percent from the start of the year.
Sharp volatility in TOCOM platinum and currencies have made
investors reluctant about taking new buy positions on rallies,
traders said.
Firmness in platinum prices has pushed up its sister metal,
palladium.
Palladium <XPD=> rose to $424/429 an ounce from $416/421 on
Wednesday. It had reached a six-year high of $426.50 on Tuesday.
Cash gold <XAU=> was trading at $906.20/907.10 an ounce, up
from $900.40/901.10 late in New York on Wednesday.
However, Sugata said gold appeared to be losing momentum and
struggling to rise strongly above $900.
"It's tough to take fresh positions as uncertainties in
financial markets are spreading with stock prices losing ground
again. Also the market wants to the see the outcome of the G7
meeting before taking new positions in gold."
The Group of Seven finance ministers and central bank
governors are expected to debate how recent market turmoil and a
U.S. economic slowdown could affect the world economy when they
meet in Tokyo on Saturday.
COMEX gold futures extended gains in Asia after rising 1.7
percent in New York on Wednesday. The April contract <GCJ8> was
up $5.7 or 0.6 percent at $910.7 from the New York settlement.
Precious metals prices at 0902 GMT
Metal Last Change Pct chg YTD pct chg Turnover
Spot Gold 906.40 6.00 +0.67 8.85
Spot Silver 16.64 0.13 +0.79 12.66
Spot Platinum 1833.00 23.00 +1.27 20.59
Spot Palladium 424.00 8.00 +1.92 15.22
TOCOM Gold 3129.00 72.00 +2.36 2.25 81738
TOCOM Platinum 6013.00 182.00 +3.12 12.62 56368
TOCOM Silver 573.00 13.40 +2.39 5.91 971
TOCOM Palladium 1488.00 54.00 +3.77 10.14 2136
Euro/Dollar 1.4618
Dollar/Yen 106.57
TOCOM prices in yen per gram, except for silver which is in yen
per 10 grams, spot prices in $ per ounce.
(Reporting by Chikafumi Hodo; Editing by Chris Gallagher)
