(Update prices to afternoon, adds comments and byline)
By Chikafumi Hodo
TOKYO, April 10 (Reuters) - Gold maintained its strength on
Thursday after surging more than 2 percent a day earlier as
record high crude oil prices and the dollar's weakness prompted
buying by investment funds.
Firmness in Japanese gold futures prices gave support to cash
gold, but traders were reluctant to chase prices higher amid
wariness over a plan by the International Monetary Fund to sell
around 400 tonnes of its gold. []
Asian investors were also unwilling to trade actively before
a series of earning results by U.S. financial institutions next
week, traders said.
"Underlying sentiment for precious metals is strong due to
oil and the dollar, but the IMF sales plan and uncertainties in
the financial sector are giving psychological pressure," said
Hiroyuki Kikukawa, an analyst at IDO Securities in Tokyo.
"At the moment, demand by jewellers and other end-users is
weak due to high prices, but funds are still looking for a chance
to shift into gold for safe-haven purposes," he said.
By 0240 GMT, gold <XAU=> was little changed at $931.70/932.50
an ounce from $932.50/933.30 late in New York on Wednesday.
Analysts said the market would absorb the possible selling of
gold by the IMF, which is expected to take place in a controlled
manner.
The market is keen to see details about how and when the IMF
would sell, which could be discussed at the G7/IMF meeting this
weekend, traders said.
The IMF is the world's third-largest gold holder after the
United States and Germany, with 3,217.3 tonnes in stock. It wants
to sell 403.3 tonnes and use the profits to invest in government
and corporate bonds, and possibly equities.
COMEX gold futures edged down in Asia after a jump in New
York on Wednesday. The most active June contract <GCM8> was
trading down $1.0 or 0.1 percent at $936.5.
The benchmark February gold contract on the Tokyo Commodity
Exchange <0#JAU:> closed the morning session up 2.1 percent or 62
yen at 3,058 yen per gram from Wednesday's close of 2,996 yen.
TOCOM gold rose to catch up with gains in the cash price, but
activity was thin, with volume of only 29,375 contracts by the
morning close.
Frontmonth U.S. crude for May delivery <CLc1> hit an all-time
intraday high of $112.21 per barrel on Wednesday, eclipsing the
previous record of $111.80 hit on March 17.
The dollar fell broadly on Thursday as the market focused on
interest rate differences, with the European Central Bank meeting
later in the day and likely to keep rates steady.
Platinum <XPT=> rose to $2,023/2,033 per an ounce from
$2,018/2,025 in New York.
The key February TOCOM platinum contract <0#JPL:> ended the
morning up 0.9 percent or 58 yen at 6,487 yen per gram.
Palladium <XPD=> stood at $455/460 an ounce, little changed
from $456/460.
Silver <XAG=> inched up to $18.17/18.22 an ounce from
$18.15/18.20 late in New York.
Precious metals prices at 0240 GMT
Metal Last Change Pct chg YTD pct chg Turnover
Spot Gold 931.90 -1.90 -0.20 11.91
Spot Silver 18.14 -0.01 -0.06 22.82
Spot Platinum 2023.00 5.00 +0.25 33.09
Spot Palladium 454.00 -2.00 -0.44 23.37
TOCOM Gold 3059.00 63.00 +2.10 -0.03 21172
TOCOM Platinum 6483.00 54.00 +0.84 21.43 6349
TOCOM Silver 597.10 18.80 +3.25 10.37 309
TOCOM Palladium 1519.00 10.00 +0.66 12.44 594
Euro/Dollar 1.5836
Dollar/Yen 101.33
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)
