TechFlow, Oct. 10 — Ajay Rajadhyaksha, head of Barclays Global Research, said in a report that the rise in gold prices this year reflects growing market distrust toward the existing fiscal and monetary order. He noted that the debt burdens of four major economies—the United States, the United Kingdom, France, and Japan—have all exceeded 100% of their respective GDPs, and their fiscal conditions continue to deteriorate. He added, "Most importantly, there is almost no political will for fiscal consolidation." Meanwhile, other traditional safe-haven assets such as the Japanese yen and Swiss franc are losing some of their appeal. Rajadhyaksha stated that gold typically rises when the economy is faltering or financial markets collapse. He believes that although financial markets currently appear healthy, the recent rise in gold prices should serve as a warning to policymakers. (Jinshi)
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