Will gold sustain price rally?

Gold prices have shown resilience amidst escalating tensions in the Middle East, with traders closely monitoring U.S. economic cues for further direction. Nere Emiko, Vice Chairman of Kian Smith Refinery, shared insights on the recent price movements and the introduction of the Ghana gold coin during a recent interview with CNBC Africa. Emiko highlighted that despite the turmoil in the Middle East, gold prices have not seen a significant rally, currently hovering around $2640 after reaching a peak of $2673 last week. The weakened dollar and expectations of positive job reports have contributed to the stability of gold prices. Emiko emphasized that while geopolitical tensions in the Middle East could support higher gold prices, there is a resistance level around $2676 that the precious metal needs to surpass for a substantial rally. Looking ahead, Emiko expressed optimism about gold prices, predicting a year-end target of $2800, aligning with other forecasts from institutions like Goldman Sachs and JP Morgan. The discussion also shifted to the introduction of the Ghana gold coin, which Emiko viewed as a positive development for the region. Ghana's initiative aims to address liquidity challenges and hedge against inflation by offering a financial asset not intended as legal tender. Emiko highlighted the potential for tokenization to enhance accessibility to gold investments for a broader audience. Furthermore, Emiko discussed Nigeria's efforts in the gold sector, noting progress in production capabilities and emphasizing the importance of a sustainable supply chain and responsible sourcing practices. The interview underscored the strategic initiatives undertaken by African countries to leverage their gold reserves and stimulate economic growth within the region.