The amount of gold bars sold in October through the nationwide retail network of bullion house Tanaka Kikinzoku Kogyo surged 195 per cent from the previous month and 298 per cent from last year, the company said.

Retail sales of platinum bars in October soared 241 per cent month-on-month and 587 per cent year-on-year, Tanaka said.

Tanaka declined to reveal the metals' actual sales volume.

In the first 10 months of 1998, Tanaka's retail sales of gold bars increased 13 per cent from the same period last year.

Its retail sales of platinum bars for the first 10 months rose 69 per cent year-on-year.

A Tanaka official attributed the sales increases to low retail prices brought about by the yen's sharp gains against the dollar and a falling tendency in spot market prices.

Retail gold pricesoffered by Tanaka averaged 1,211 yen per gram in October, down 6.8 per cent from the average retail price in September of 1,299 yen.

The October price was the lowest since July 1995.

Tanaka's retail platinum prices averaged 1,411 yen per gram in October, down 13 per cent from the average price in September. The October price was the lowest level since December 1995.

The dollar averaged 122.49 yen in October on a Tokyo fixing basis, down 9.7 per cent from September.

Spot gold market has been in a gradual downtrend since it rose above $300 an ounce early in October, and prices hit a six-week low at $288.60 an ounce on Tuesday.

Spot platinum was quoted at around $340 an ounce on Wednesday in Tokyo, after hitting a seven-year low of $329 last month.

Reflecting robust physical demand, gold bullion prices for delivery in Tokyo stayed high at a premium of $1.20 to $1.30 per ounce over the loco London market, compared with parity early in October, traders said.

The loco Tokyo platinum premium alsostayed firm at $3 per ounce over the Zurich benchmark, against $1.5 early in October.