 "Gold")
Gold prices have started moving in a manner that would concern investors and policymakers around the world. Though they are still far from their decadal high of 2011, gold prices started rising rapidly since May (Chart 1). Considered as a safe haven investment, rising gold demand is reflecting risk aversion in the global financial system.
Gold is rallying with higher US stock prices, represented by the S&P 500 index, which is said to be overvalued at the moment (Chart 2). Meanwhile, the US dollar is also strengthening.
Yields on long-term government bonds in major advanced economies, such as Germany and
