Japan Welcomes First Female PM as Gold Prices Hit New High
Japan is set to welcome its first female prime minister, Sanae Takaichi, after she won the leadership election of the ruling Liberal Democratic Party (LDP) over the weekend. Meanwhile, gold prices continue to soar, reaching new heights due to increased investor demand for safe-haven assets.
Takaichi, a staunch conservative and former interior minister, is expected to lead a minority government formed by the LDP and its junior partner Komeito. She favors expansive fiscal policy, indicating a preference for increased government spending to tackle issues like Japan's budget deficit, rather than strict austerity.
In the global markets, gold prices have been on a tear. Spot gold climbed 0.9% to $4,017.16 per ounce by 0442 GMT, while U.S. gold futures for December delivery rose 0.9% to $4,040. This surge comes amidst rising geopolitical tensions, a weak dollar, sustained central bank buying, and strong inflows into gold-backed ETFs. Other precious metals, such as silver, platinum, and palladium, have also seen price increases. The U.S. government shutdown further clouds the economic outlook, reinforcing bets on lower interest rates. Gold has already surged 53% in 2025 and 27% in 2024, making it one of the year's top-performing assets. Financial institutions like Goldman Sachs and UBS have raised their gold price forecasts for 2026, citing sustained central bank purchases and further monetary easing.
Takaichi's win signals a shift in Japan's political landscape, with her expansive fiscal policy set to shape the country's economic trajectory. In the global markets, gold's rally shows no signs of slowing, driven by geopolitical tensions and economic uncertainties, as investors seek safe havens.
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