The price of gold

I expect that the gold price will continue although it has already experienced a significant rise in its price based on several reasons.

Firstly, many large countries want to depreciate their currency value, including Japan and the US especially. In addition, though China has the willingness to appreciate its currency in order to bring more confidence and stability into its economy, the decline in China's foreign reserves will add some pressure on RMB's price and drag down the price. Under a global environment of increasing depreciating currency popularity, the gold price will rise instead. Secondly, the instability in Europe in terms of economics and politics will increase the gold price. The increase in populism in  European politics will affect the European unity as well as the foundation of the Eurozone. Brexit may set an example to encourage more European Union member countries to leave the European Union. The conflict between the IMF and Greece could increase the uncertainty in the regional economy. The political and economic uncertainties increase the possibility of a further increase in the gold price. Thirdly, a report from Moody's Investors Service shows that 1.063 trillion junk bonds will mature in the next five years. In addition, the average yield of high yield bonds has reached the lowest point since September 2014, showing that the popularity in high yield bonds increases; and it could become even more popular if Trump deregulates the banking sector. This definitely increases the systemic risk in the global economy and it may increase a bubble in the high yield bond market. Once the bubble bursts, there could be another financial crisis. It could be another drive to increase the gold price. Fourthly, the increase in populism in a global scale and some regional conflicts can increase the gold price.

Based on the above reasons, I expect the gold price will continue its increase trend.