Japan Retail Gold Prices Volatile on External Factors

Tokyo, Feb. 4 (Jiji Press)–Retail gold prices in Japan have been volatile over the past week, swung by developments outside the country. Tanaka Precious Metal Technologies Co., based in Tokyo, set its tax-inclusive retail gold price at a record high of 30,248 yen per gram on Thursday, exceeding 30,000 yen for the first time. This reflected heightened tensions in Iran following U.S. President Donald Trump’s repeated threats of force against the Middle East country. On Monday, the retail gold price plunged to 25,287 yen, down 16.4 pct from Thursday, after Trump nominated as next Federal Reserve chair Kevin Warsh, who is believed to be reluctant toward monetary easing. The price then recovered to 28,305 yen late Wednesday. “While gold is regarded as a safe-haven asset, that doesn’t mean prices just keep rising,” said Tsutomu Kosuge, head of Marketedge Co., which analyzes commodity markets. “Given the recent signs of overheating, prices may drop if there is a shock event,” Kosuge said. END [Copyright The Jiji Press, Ltd.]