Weekly Precious Metals Update - Uncertainty is Lifting Gold

Over the past week, the gold market experienced notable shifts driven by several factors. Heightened trade policy uncertainty, fueled by Trump’s potential tariffs on Canada, Mexico, China, and the European Union (plus Colombia for 24 hours!), prompted investors to seek safe-haven assets like gold. This coincided with a slightly weaker U.S. dollar, further bolstering gold's appeal by making it more affordable for holders of other currencies.

Geopolitical tensions also played a role, particularly in Mali, where Barrick Gold faces a dispute with the government over alleged unpaid taxes. This led to the seizure of gold stockpiles and the suspension of operations at Loulo-Gounkoto, one of the world’s largest gold mines. Additionally, the Malian government has issued an arrest warrant for Barrick’s CEO Mark Bristow, according to Bloomberg, raising concerns about potential disruptions to the global gold supply. The two parties are set to meet this week for renewed negotiations. 

Meanwhile, in Ghana, the government announced plans to establish a Gold Board to streamline purchases from small-scale miners, curb smuggling, and increase revenue. Data from Ghana’s central bank showed total gold exports for 2024 reached $11.64 billion, a 53.2% year-on-year increase, nearly doubling the country's trade surplus to $4.98 billion. This initiative could significantly impact global gold trade by enhancing transparency and supply chain efficiency.

These developments collectively influenced market sentiment, reinforcing gold’s dual role as a hedge against uncertainty and a critical commodity in global trade.

Sources: Bloomberg, Reuters