Platinum Futures Gain in Tokyo as Yen Drops to One-Month Low

By Dave McCombs

July 28 (Bloomberg) -- Platinum futures in Tokyo gained for the first time in four trading days as the Japanese currency fell to a one-month low against the dollar, boosting demand for yen- denominated contracts.

Metal for immediate delivery rose for a second day after snapping a nine-day losing streak on July 25. Platinum's advance, after declining to an almost-six month low last week, prompted speculation physical demand may prevent further falls.

Platinum is ``just about due for a bounce,'' Jonathan Barratt, managing director of Commodity Broking Services in Sydney, said today by phone. ``It is getting support at these levels, and if we get another day of gains, it's a buy signal.''

Platinum for June delivery jumped 140 yen, or 2.4 percent, to 6,040 yen a gram ($1,741 an ounce) on the Tokyo Commodity Exchange.

Immediate-delivery platinum gained $5 to $1,761 an ounce at 12:06 p.m. Tokyo time, 0.3 percent higher than July 25 in New York. The metal on July 25 dropped to $1,712.50, matching the lowest since Jan. 31.

The yen last traded at 107.86 yen versus the dollar in Tokyo, from 107.84 on July 25 in New York. It earlier weakened to 108.07, the lowest since June 26.

To contact the reporter for this story: Dave McCombs in Tokyo at dmccombs@bloomberg.net