Platinum futures pared early gains to end mostly lower, depressed by weaker spot market prices, but palladium extended Friday's New York gains to close higher.

Gold futures ranged from four to 14 yen per gram higher. Benchmark August ended up 13 yen at 1,237 yen.

"Activity was very quiet and dominated by arbitragers," one trader said. "Investors were mostly sidelined, probably because weakening share prices discouraged them from pouring fresh funds into the market."

The Nikkei stock average fell by 2.76 per cent to 13,597.30 on Monday, the lowest close since February 25, 1986.

Spot gold was quoted at $291.20/70 an ounce at 0637 GMT, unchanged from Friday's New York close.

A stronger dollar stimulated moderate selling in early morning, but bargain-hunting was active when gold prices dropped below$290.50, the trader said.

Gold's direction will continue to hinge on movements in the equity and currency markets this week, the trader said. Spot gold is expected to move between $288 and $293 in the near term, while Tocom benchmark gold is likely to stay in the range of 1,220 to 1,240 yen, he said.

Open interest of Tocom gold was 280,304 lots at the end of Friday trade, down from 287,542 lots a week ago, reflecting slow participation by investors.

Silver futures ranged from 3.3 yen per 10 grams higher to 0.6 yen lower. Benchmark August ended down 0.4 yen at 208.5.

The dollar rose above 133.50 yen in Tokyo on Monday, as Japan's political disputes over key banking legislation weighed on the yen, currency dealers said.

Platinum futures advanced in morning trade in line with the yen's fall, but prices pared most of the gains by the close as bears took the rise as a chance for selling, traders said.

Platinum futures ranged from 15 yen per gram down to seven yen up. Benchmark August ended off eightyen at 1,470 yen.

Palladium futures closed higher, with buying encouraged by a weaker yen and Friday's Nymex gains. News that Russia's Norilsk Nickel was considering reducing output was also taken positively by participants, traders said.

Norilsk, the world's major producer of base metals and platinum group metals, announced last week that its managers had held talks with trade union leaders and discussed crisis measures that included possible cuts in output volumes.

However, palladium's gains were limited by expectations of Russian spot sales on the market's rise, as well as by concerns that further price rises would depress demand, traders said.

Palladium futures ranged from seven to 15 yen per gram higher. Benchmark August ended up 12 yen at 1,167 yen.