As markets reopened at the start of the week, gold broke decisively through the four-thousand-dollar threshold, drawing in a fresh tide of investors seeking shelter from volatility that has spread well beyond currency and equity markets.
The immediate spark came from Washington’s renewed confrontation with Beijing. A sweeping package of new trade restrictions, including full tariffs on Chinese imports and limits on key technology exports, reignited concerns that the world’s two largest economies are edging back toward the brink. Beijing’s measured defence of its own export curbs did little to calm nerves. Against this backdrop, gold’s reputation as a store of value reasserted itself with notable force. Futures rose above four thousand and spot prices followed close behind, their ascent amplified by the thin liquidity of Asian trading hours.
The Federal Reserve’s shifting stance on interest rates has deepened the market’s conviction that the cost of holding non-yielding assets is set to fall further. Traders now see a high probability of two additional rate cuts before year-end, a view that has softened the US dollar and fuelled the metal’s rally.
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.
