TOKYO - Domestic gold prices in Japan fell sharply on June 11, with the benchmark retail gold price announced by Tanaka Precious Metal Technologies dropping 906 yen from the previous day to 23,262 yen per gram as of 9:30 a.m., marking the lowest level of the year.
The decline was attributed to growing expectations that interest rates in the United States will rise, reducing demand for gold, which does not generate interest income.
The latest price movement reflects shifting investor sentiment as higher interest rate expectations make interest-bearing assets more attractive relative to gold.
Japan's domestic gold market has experienced a dramatic reversal in 2026, falling to its lowest level of the year after reaching record highs just months earlier.
Gold prices surged at the start of the year as investors sought safe-haven assets against a backdrop of geopolitical uncertainty and concerns over the global economy. The rally culminated on January 29, when Tanaka Precious Metal Technologies' benchmark retail selling price surpassed 30,000 yen per gram for the first time, reaching a record 30,248 yen.
The upward momentum continued into early March, with gold reaching its highest level of the year as strong investment demand and a weaker U.S. dollar supported prices. At the time, many investors viewed gold as a hedge against economic and political risks.
However, sentiment began to shift during the spring. As expectations grew that the U.S. Federal Reserve would maintain a tighter monetary policy and potentially raise interest rates, demand for gold weakened. Because gold does not pay interest, higher rates tend to make bonds and other interest-bearing assets more attractive.
Prices gradually retreated through April and May before falling sharply in June. On June 11, Tanaka Precious Metal Technologies announced that its benchmark retail gold price had dropped 906 yen from the previous day to 23,262 yen per gram as of 9:30 a.m., marking the lowest level of 2026.
The decline represents a fall of nearly 7,000 yen per gram from the record level reached in January, underscoring the scale of the correction in the domestic gold market. Despite the recent downturn, gold prices remain well above levels seen only a few years ago, reflecting the precious metal's strong long-term gains.
Market participants are closely watching U.S. monetary policy, as further signs of interest rate increases could continue to weigh on gold prices, while renewed economic uncertainty or geopolitical tensions could revive demand for the traditional safe-haven asset.
Source: テレ東BIZ
