Gold has surged above $5,000 per ounce, a key level that reflects changing priorities among major central banks and a shift in global monetary expectations.
China’s central bank remains a primary driver. February marks the fifteenth consecutive month of official gold purchases by the People’s Bank of China. These regular inflows have added consistent support to the market, reinforcing gold’s role as a strategic asset amid rising geopolitical and currency risks. This steady accumulation by one of the world’s largest reserve holders suggests continued confidence in gold as a store of value, especially as diversification away from the US dollar continues.
The Federal Reserve is also back in focus. Markets are increasingly pricing in potential interest rate cuts later in the year, which would reduce the opportunity cost of holding non-yielding assets like gold. This policy shift has weakened the US dollar, boosting demand for gold in foreign currency terms.
KEFI Gold and Copper plc (LON:KEFI) is an exploration and development company focused on gold and copper deposits in the highly prospective Arabian-Nubian Shield. The Company operates in Ethiopia and Saudi Arabia with projects including Tulu Kapi project, Jibal Qutman EL and Hawiah.
