GOLD
Gold has long occupied a unique position in the global financial system, and unlike most mainstream commodities, its value extends well beyond industrial uses. The metal also serves as a store of wealth, a potential hedge against inflation, and a safe-haven asset during periods of economic uncertainty. Today, as geopolitical tensions remain high, inflation stays elevated in many countries, and central banks continue to add to their reserves, the metal is once again demonstrating its strategic importance. Gold’s outlook: Why market dynamics are supporting long-term sector growth
Tailings Storage Facility at Hillside.
According to the World Gold Council, central banks have collectively purchased more than 1 000 tonnes of gold annually for three consecutive years, marking the strongest sustained period of official-sector buying on record.
G old reached successive
investment and central-bank buying. According to the World Gold
record highs during 2025, rising by an average of 44% year-on-year according to
Council, central banks have collectively purchased more than 1 000 tonnes of gold annually for three consecutive years, marking the strongest sustained period of official-sector
Metals Focus and crossing the $4 500/ oz threshold in December. After exceeding $5 500/oz in January 2026, prices have corrected and stabilised throughout 2026. Short-term price movements remain sensitive to interest-rate expectations and currency markets. Still, the broader demand picture is resilient: total annual demand exceeded 5 000 tonnes for the first time in 2025. It reached a record 2 522 tonnes in H1 2026, driven largely by safe-haven
buying on record. As countries diversify their reserve holdings away from traditional currencies, gold’s role as a strategic asset is being reinforced by an increasingly fragmented geopolitical environment. Investment demand has also remained resilient. Periods of market volatility, ongoing geopolitical conflicts, and persistent
12 MODERN MINING www.modernminingmagazine.co.za | OCTOBER 2026
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