How long will Trump effect sustain gold’s bull run?

The gold market continues its bullish run, hitting fresh all-time highs at around $2,896 per ounce. The surge in gold prices can be attributed to concerns about the potential economic fallout from US President Donald Trump's tariffs and escalating US-China trade tensions, which are driving investors towards safe-haven assets like gold. Nere Emiko, Vice Chairman of Kian Smith Refinery, shed some light on the current state of the gold market during a recent interview on CNBC Africa. Emiko pointed out that while there is anticipation and fear surrounding the expected tariffs from President Trump, gold has already surpassed the $2,900 mark, experiencing a 40% increase since last January and an 11% increase just this year. With trade wars, inflation worries, and the Federal Reserve's decision to keep interest rates steady, investors are flocking to gold as a store of value. The conversation also touched on the impact of tariffs on other metals like aluminum, diamond, platinum, and how they compare to gold. Emiko explained that metals like aluminum are crucial for powering industries, which align with Trump's 'America first' agenda. In contrast, gold and other precious metals are more commonly used for economic purposes and jewelry, making them less likely targets for tariffs. When discussing the central banks' increased stake in gold reserves, Emiko highlighted that they have been the biggest buyers, contributing to the rising demand for gold. The dynamics in the market, including a shortage of physical gold and delays in delivery, are further bolstering the upward pressure on gold prices. Addressing concerns about gold being overvalued, Emiko stressed that the current market conditions, including short positions and trading derivatives, indicate that gold prices are not inflated but rather undervalued. He emphasized the potential for governments, including Nigeria, to capitalize on the booming gold market. Nigeria, as a significant gold producer, stands to benefit from strategic investments in gold as the precious metal continues its upward trajectory. In conclusion, Emiko encouraged African governments and central banks to seize the opportunity presented by the surging gold market. With gold prices on the rise and global uncertainties mounting, leveraging the potential of gold as a valuable asset could prove beneficial for countries like Nigeria and the wider African continent.