Gold Prices in Japan Hit Record Highs

Osaka, Feb. 21 (Jiji Press)--Gold futures and physical gold prices in Japan hit record highs on Monday as investors shifted funds from stocks and other assets to the safe-haven precious metal amid escalating tensions over Ukraine. In futures trading on the Osaka Exchange, the most actively traded contract, currently for delivery in December, rose to as high as 7,041 yen per gram. The previous all-time high was 7,032 yen, marked on Aug. 7, 2020. At Tanaka Kikinzoku Kogyo K.K., a Tokyo-based major precious metals retailer, physical gold prices came to 7,790 yen per gram including tax, eclipsing the previous record high set also in August 2020. High inflation globally is also behind the uptrend in prices of gold, believed to be a good inflation hedge. Energy prices have been under upward pressure as the Ukraine crisis fueled concerns about disruption of crude oil and natural gas supplies from Russia, which has amassed troops near its border with the neighboring country. "Gold could continue to be bought for the time being," a market participant said. The key gold futures contract later gave up its early gains to end at 6,977 yen on news that Washington and Moscow have agreed in principle that U.S. President Joe Biden and Russian President Vladimir Putin will hold talks on condition that Russia does not invade Ukraine, market sources said. END