TOKYO, Dec 26: Tokyo gold futures jumped nearly 2 per cent to their highest in nearly a week on Monday as a recovery in dollar-based prices prompted active bargain-hunting by investors and trading houses based on the metal’s strong fundamentals.

Relatively strong buying emerged early in holiday-thinned Tokyo trade amid growing views that heavy downward corrections seen in the last two weeks could be over.

The benchmark December 2006 gold contract on the Tokyo Commodity Exchange closed at a session high of 1,913 yen — its highest since Dec. 20. It was up 35 yen or 1.86 per cent from Thursday’s settlement.

Other contracts closed up 15 to 33 yen.

Tokyo markets were closed on Friday for a public holiday.

The market was starting to be convinced that investors have completed squaring positions following recent major selloffs, said Takashi Ogura, a manager at Kanetsu Asset Management.—Reuters