Gold futures climbed in Tokyo for the first time in four days as incoming Japanese Prime Minister Shinzo Abe pressured the central bank to raise its inflation target, boosting demand for bullion as a safe haven.
Bullion for delivery in October advanced 1.2 percent to close at 4,517 yen per gram ($1,657 an ounce) on the Tokyo Commodity Exchange. Gold for immediate delivery rose 0.3 percent to $1,663.15 an ounce. Markets in the U.S. and U.K. are closed for Christmas Day.
Abe of Japan’s Liberal Democratic Party said over the weekend he may amend the law governing the Bank of Japan if it fails to set a higher inflation target, driving the yen down 0.8 percent yesterday. The yen touched 84.96 per dollar, the weakest since April 2011. Gold has increased 6.4 percent this year, heading for a 12th straight annual gain.
“Gold was partly supported by Japan’s inflation target news,” said Hiroyuki Kikukawa, the general manager of research at IDO Securities Co. In Japan, the weaker yen also lent support to Tocom futures, he said.
Silver for immediate delivery rose 0.6 percent to $30.08 an ounce. Spot platinum was up 0.2 percent at $1,536.90 and palladium was unchanged at $685.90 an ounce.
To contact the reporter for this story: Jae Hur in Tokyo at firstname.lastname@example.org
To contact the editor responsible for this story: James Poole at email@example.com