Will gold sustain price momentum?

Gold prices saw a remarkable increase of about 30 per cent in 2024, sparking curiosity about whether this momentum will continue through 2025. Nere Emiko, the Vice Chairman at Kian Smith Refinery, recently shared insights on the current state of the precious metal and the outlook for the year. Emiko highlighted that after the US elections in November, gold experienced a dip due to uncertainties surrounding the political landscape. However, as things settled, sentiments shifted, and the market regained its upward trend. Additionally, central banks continue to show interest in gold, further supporting its market trajectory. Emiko mentioned the possibility of a US Federal Reserve rate cut, noting that such a move would bolster gold prices. Despite speculations of a pause in rate cuts by the Fed, the overall sentiment leans towards continued growth in gold prices, barring any unforeseen circumstances. While discussing the broader outlook for minerals, Emiko touched upon the strategic engagements between countries like Saudi Arabia and Nigeria. Saudi Arabia's interest in critical minerals aligns with its efforts to diversify its energy portfolio beyond oil. On the other hand, Nigeria, spearheading the African Mineral Strategy Group, aims to ensure that African nations negotiate collectively for mutual benefits and value addition in mineral deals. Emiko emphasized the importance of policy structures that promote value addition in mineral processing, reflecting Nigeria's focus on maximizing the economic benefits from its mineral resources. As discussions and dialogues progress, the goal remains to create win-win outcomes for both African nations and global partners like Saudi Arabia, fostering a collaborative and mutually beneficial approach in the mineral sector. Emiko reiterated the significance of value addition in resource management, echoing the sentiment that extracting and exporting raw materials is no longer sufficient. By emphasizing value addition and strategic partnerships, countries can enhance their economic gains and ensure sustainable development in the mineral sector.