Rising Gold Prices Reflect Growing Distrust in Fiscal Policies, Expert Says

According to PANews, Ajay Rajadhyaksha, Chairman of Barclays Global Research, has highlighted in a recent report that the increase in gold prices this year signifies a growing distrust in the current fiscal and monetary systems. He pointed out that the debt burdens of four major economies—the United States, the United Kingdom, France, and Japan—exceed 100% of their respective GDPs, with their fiscal conditions continuing to deteriorate. Rajadhyaksha emphasized the lack of political will to implement fiscal reforms. Meanwhile, traditional safe-haven assets like the Japanese yen and Swiss franc are losing some of their appeal. Rajadhyaksha noted that gold typically rises during times of economic instability or financial market collapse. Despite the current healthy performance of financial markets, he believes the recent surge in gold prices should serve as a warning to policymakers.