Will gold sustain price rally?

Gold prices hit a milestone last week, crossing the $3,000 per ounce mark, driven by the demand for safe-haven assets amidst concerns over President Trump's tariffs and global geopolitical shifts. Nere Emiko, Vice Chairman at Kian Smith Refinery, discussed the recent price uptrend, central bank purchases, and the expected impact of Ghana's Gold Board in a recent interview with CNBC Africa. Emiko highlighted the significant uptick in central bank purchases of gold, with about 18 tons acquired in January alone, primarily from emerging markets. This surge in demand, coupled with trade war tensions, has propelled gold prices to nearly $3,005 before a slight pullback. Emiko expressed confidence in the continued momentum, attributing it to a weakened US dollar and US trade policy strategies aimed at boosting American exports. When pressed for a price prediction for gold later this year, Emiko suggested that prices could surpass the $3,150 range, emphasizing the anticipated impact of ongoing market dynamics on gold's value. He underscored the importance of African central banks following the lead of emerging market counterparts in bolstering their gold reserves to leverage the weakening US dollar. Emiko praised Ghana's initiative in establishing a gold board, allocating $279 million for its setup. He commended the move as a step towards enhancing transparency in gold trading, supporting the local currency, and strengthening the country's reserves. Emiko lauded the board's potential to streamline Ghana's gold exports and refining processes, curbing leakages and fostering economic stability. Shifting focus to Nigeria's strategy on critical minerals, Emiko acknowledged the country's early-stage status in mineral production, emphasizing the need for prudent planning and exploration. While Nigeria holds substantial reserves, Emiko urged a cautious approach given the nation's current exploratory phase. He advised prioritizing reforms and investment in critical minerals to capitalize on their economic potential in the future. In conclusion, Emiko expressed optimism for gold's continued rally, foreseeing higher prices than the projected $3,150 range. He urged African nations to align their gold strategies with emerging market trends and commended Ghana's proactive approach in bolstering its gold sector. Emiko's insights shed light on the evolving landscape of gold trading and the strategic importance of precious metals in the global economic landscape.