Japan's retail gold price surged to a record 21,632 yen (about 142 U.S. dollars) per gram on Tuesday, reflecting a weaker yen and growing global uncertainties.
The soaring price has fueled brisk trading, with long queues forming outside gold retailers as consumers rush to buy or sell.
In Tokyo, citizens expressed strong interest in gold as both a safe haven and a store of value.
"Gold holds value better than cash amid the inflation. Gold supply is limited, and under the current international situation, it feels better to own gold from a future perspective," said a Tokyo citizen.
"I might consider buying if the price drops a little. But with gold at a record high, I think about selling the gold I have at home," another resident said.
A Tokyo gold shop employee said customer traffic has nearly doubled from last year, with both sales and recycling volumes up sharply. Many buyers are choosing bars and ingots rather than jewelry such as rings or necklaces.
"Today, a customer has already ordered eight 25-gram bars, totaling 200 grams, for 4.3 million yen (about 28,200 U.S. dollars). Due to rising distrust in the U.S. dollar, people are selling dollars and coming to buy gold," the employee said.
Analysts noted that the sharp fall of the yen has driven gold prices higher in yen terms.
On Tuesday, the Japanese currency slid below 152 yen per dollar, its weakest level in eight months, amid market expectations that ruling Liberal Democratic Party's new leader Sanae Takaichi will adopt expansionary fiscal policies.
At the same time, mounting concerns over the ongoing U.S. government shutdown and global geopolitical tensions have pushed investors toward gold as a safe-haven asset.
Data showed Japan's retail gold price has risen about 40 percent since the beginning of the year, doubling compared with two years ago.
Gold prices in Japan hit record high as yen weakens
Japanese citizens took to the streets of Tokyo's Shinjuku district on Saturday, voicing strong opposition to Prime Minister Sanae Takaichi's administration for lifting the ban on lethal weapons exports, advancing a "National Intelligence Agency" bill, and pushing for the revision of the country's postwar pacifist constitution.
On Tuesday, the Japanese government, led by Prime Minister Sanae Takaichi, officially revised the "three principles on transfer of defense equipment and technology" and their implementation guidelines.
The revisions scrap the restrictions that had limited arms exports to five non-combat categories, allow, in principle, the export of lethal weapons, permit transfers to nations engaged in active conflict under specified circumstances, and sideline parliament from the decision-making process, crossing a line that previous governments had at least nominally upheld.
"Allowing the export of lethal weapons and even attempting to possess nuclear arms, the Takaichi administration is leading Japan toward war, despite our postwar commitment of never starting a war again. Many people are worried. This must be stopped," said a protester.
The cornerstone of Japan's pacifist constitution is Article 9, which renounces the nation's right to engage in war or to resort to military force to resolve international conflicts. For decades, this article has been a fundamental constraint on Japan's military endeavors.
"I am firmly opposed to amending the Constitution. Takaichi claims 'the time has come,' but that's just her own decision. Without Article 9 of the Constitution, Japan could be swept into America's wars. That must not happen," said another participant.
"Japan once invaded other Asian countries and has maintained a pacifist constitution ever since. But now the government has arbitrarily decided to lift the ban on exporting lethal weapons without sufficient parliamentary debate. It's unacceptable," said another demonstrator.
"If we abandon our stance as a peaceful nation under the constitution, it would be absolutely intolerable. Thanks to Article 9, Japan hasn't waged war or been pulled into conflict. For Japan's place in the international community, Article 9 must not be changed," said another protester.
Tokyo protesters oppose Takaichi’s lethal weapons export, constitution revision plans
Tokyo protesters oppose Takaichi’s lethal weapons export, constitution revision plans
