Gold is in 2016 A big year-on-year increase—strangely, at 2015 Year 12 Both monthly market expectations and technical charts suggest that gold is likely to decline. However, the world has changed—geopolitical factors, deflationary pressures, quantitative easing, and negative interest rates are all providing favorable support for gold.

　　The strong U.S. dollar this year has raised concerns that it might cap gold prices; however, the World Gold Council points out that six major trends are supporting gold.

　　1. Geopolitical risks are on the rise as Germany and France draw closer, and the UK embarks on the Brexit process. Although U.S. President Trump’s economic policies have boosted public confidence, some issues remain. His trade protectionism is overly aggressive and could spark friction.

　　2. Inflation is on the rise. The increase in U.S. inflation could spark heightened interest in gold, which serves as an ideal hedge against inflation. Moreover, real interest rates are likely to remain low under inflationary pressures, which is also positive news for gold.

　　3. Stock market bubble. S&P 500 (S&P 500) Reaching historic highs, market valuations have already prompted many experts to sound the alarm, while gold can effectively diversify investment portfolios.

　　4. Central bank buying. The central bank continues to accumulate gold with the aim of diversifying its foreign exchange reserves.

　　5. Asia is growing. India’s economic growth is encouraging, and China is also showing signs of stabilization. The two countries are... 2016 The year’s gold demand accounted for over... 50%。

　　6. New market. The launch of the gold standard under Islamic law means that gold trading will now be legally permitted in Islamic regions.