As weakness in the yen looks set to continue into next year, prospects for gold priced in the Japanese currency have rarely looked so good.

Japanese investors with exposure to yen-denominated bullion have earned themselves healthy returns so far this year, with domestic prices for the precious metal now hovering around a record high of ¥10,000 ($68) per gram — up around 18% since January.

The gains are mainly being fueled by the collapse in the yen, according to Toshitaka Tazawa, commodities analyst at Fujitomi Securities. The currency is trading near multidecade lows, and has fallen against all of its Group of 10 counterparts this year. That offers a strong case for Japanese investors to hold — rather than sell — the precious metal, which should benefit from strength in the dollar-yen rate, as the international benchmark is usually quoted in the greenback.