TOKYO, Apr 5 (Xinhua/APP): Prices of gold in Japan leaped to a new high on Wednesday as investors have been switching out of riskier assets like stocks and into perceived safe havens like gold amid concerns over a U.S. economic slowdown.
On the Osaka Exchange late on Tuesday, benchmark gold futures temporarily hit 8,554 yen (65.16 U.S. dollars) per gram, and topped the 8,500 yen mark (64.76 dollars) per gram on Wednesday, dealers here said.
Following the collapse of prominent banks in the United States and Europe leading to fears over the stability of the global financial network, the price of gold has consistently increased, as is usually the case during global financial turmoil.
Adding to investor jitters, key U.S. jobs data released on Tuesday came in well below median economists’ forecasts.
Official figures showed that U.S. job openings fell to their lowest level in almost two years in February, with a larger-than-expected decline in job vacancies underscoring how tight labor conditions are in the world’s largest economy.
Risks to the market, along with the job situation, include the future U.S. Federal Reserve’s monetary policy in relation to this, market strategists here said, as well as tighter credit conditions and the potential for hefty job layoffs in the near future.
All risks, they said, of late have been catalyzing investors’ moves away from risky assets and into gold.
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