KARACHI: President Pakistan Businessmen and Intellectuals Forum Mian Zahid Hussain has said unprecedented and continued hike in the price of gold in the international market is a sign of global economic crisis.
Interest rate reduction by central banks to cope with the pandemic helped yellow metal regain lost ground and the bad news about economic recovery has prompted investors and masses to buy gold, he said.
Mian Zahid Hussain said that actions like an interest rate cut, rescheduling or waiving off of loans, stimulus packages and cash support to masses were 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 the pandemic which indicates that businessmen are less interested in investment and more interested in saving their assets. He noted that the confidence in the dollar and other international currencies is at the lowest ebb. However, euros and yens 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 tensions between US and China were also resulting in panic which may or may not settle after US elections.
If central banks of developed nations further cut interest rate to tackle looming stagflation it will give a further boost to gold, he said.
Copyright Business Recorder, 2020
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