Over the past year, gold has broken through historic thresholds with unusual conviction. Spot prices have settled near the US $4,000 per ounce mark and even surged above US $4,300 in recent weeks. This rally signals a regime where traditional safe‑havens are being re‑invigorated by fresh structural tailwinds. One significant policy move came from China’s decision to remove a long‑standing value‑added tax rebate for gold sold via the Shanghai exchange, impacting both domestic jewellery demand and the cost of imported bullion.
Some strategies now treat a near‑term consolidation not as a sign of failure, but as a strategic pause. Two outcomes seem plausible: if we return to a more stable growth/inflation regime and central bank buying slows, gold may trade sideways or down mildly from current levels. On the other hand, if uncertainty resurfaces, gold could press higher toward the US $5,000 per ounce region.
For long‑term portfolios, the metal is being repositioned as a mainstream hedge, with some asset‑allocators recommending 5‑10 % allocations. Amid this, investors must weigh liquidity, cost of carry, timing of entry and the potential for volatility. The correction we witnessed after the policy shift in China, a dip, then a rebound, highlights that even in strong environments, pull‑backs are part of the landscape.
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.
