President of the Pakistan Businessmen and Intellectuals Forum and All Karachi Industrial Alliance and Senior Vice Chairman of FPCCI’s Businessmen Panel Mian Zahid Hussain said on Monday that an unprecedented and continuous increase in the prices of gold in the international market was 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 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. If central banks of developed nations further cut interest rate to tackle looming stagflation it will give a further boost to gold, he said.