Modern Mining April 2025

GOLD OUTLOOK

Gold production from Africa is anticipated to be lower in 2025, compared to last year.

Turbulent times buoy investment in gold By Nelendhre Moodley

Underpinned by turbulent times, the gold market is coining it, so to speak. Modern Mining recently caught up with John Reade, Chief Market Strategist at the World Gold Council, to chat about how tempestuous global events are influencing the fundamentals for gold in 2025.

Chief Market Strategist at the World Gold Council.

F renetic policy announcements from the new US administration on tariffs and political turmoil from gold producing areas in Africa including, the Democratic Republic of Congo (DRC), Burkina Faso and more recently, policy changes to mining regulations for foreign companies operating in Mali, have heightened global market uncertainty and seen investors turn to gold as a safe-haven asset. According to Reade, who spoke to Modern Mining on the sidelines of the Investing in African Mining Indaba 2025, risk and uncertainty have increased following Donald Trump’s victory. Since taking office, Trump’s stance on key issues has instigated a higher level of uncertainty, which is having a positive impact on the price of gold.

“Donald Trump is threatening to institute import tariffs on a wide range of countries, which is causing significant volatility across all markets. The threat of broad-based tariffs has affected the gold market, particularly the relationship between the gold market in London and the gold market in New York. In fact, there have been shipments of more than 430 tons of gold into New York between December 2024 and January this year, with traders continuing to purchase more bullion. By importing more gold in the immediate and short-term, traders are mitigating the expected higher gold price. As it is, we expect Central Banks to continue buying large amounts of gold,” says Reade, who explains that with the United States administration being so

6  MODERN MINING  www.modernminingmagazine.co.za | APRIL 2025