Increase in gold prices 'a sign of global economic crisis'

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Increase in gold prices 'a sign of global economic crisis'
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President of the Pakistan Businessmen and Intellectuals Forum and All Karachi Industrial Alliance and Senior Vice Chairman of FPCCI’s Businessmen Panel Mian

Interest rate reduction by central banks to cope with the pandemic helped yellow metal regain lost ground and thehas prompted investors and masses to buy gold, he said in a statement issued here.

Mian Zahid Hussain said that actions like an interest rate cut, rescheduling or waiving off loans, stimulus packages and cash support to masses was not enough to deal with the virus which has prompted a global buying spree. He said the gold price has jumped by thirty percent since pandemic which indicates that businessmen are less interested in investment and more interested in saving their assets.

The business leader noted that the confidence in the dollar and other international currencies is at the lowest ebb however, Euro and Yen are still performing better than USD. He said that different governments are investing heavy amount for economic recovery which is impossible without printing money while the tensions between US and China is also resulting in panic which may or may not settle after US elections.

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