Trump's Golden Legacy: Gold Prices Surge Amid Economic Uncertainty

Gold prices have surged 35% over the past year, outperforming the stock market, as investors seek safe assets amid economic uncertainty. Central banks are also buying gold to diversify their reserve holdings. Donald Trump's presidency has contributed to the gold rush, with the metal glittering like never before.

Gold prices have surged 35% over the past year, outperforming the stock market, as investors seek safe assets amid economic uncertainty. Central banks are also buying gold to diversify their reserve holdings. Donald Trump's presidency has contributed to the gold rush, with the metal glittering like never before [1].

Zimbabwean laboratories are struggling to cope with a surge in mineral samples submitted by mines ramping up exploration activity in response to record gold prices [1]. Geopolitical tensions, central bank buying, and economic uncertainty, fueled by US President Donald Trump's tariffs, have driven gold prices to a record high of $3,500 an ounce in April [1]. Even countries such as Zimbabwe, where gold production had slumped, have registered a rebound in output as companies ramp up production and new investors pour in [1].

The Southern African country's gold output rose to 24.3 metric tonnes in the first seven months of 2025, a 40% increase compared to the same period last year. Output for the year is expected to exceed 40 metric tonnes, a new record and a remarkable turnaround from only 3 tonnes in 2008 [1]. One of the top gold producers in Zimbabwe, Caledonia Mining Corp, has experienced delays in getting samples from its exploration activities back from accredited laboratories in the country [1].

Kinross Gold (KGC), a Canadian gold mining company, has been outperforming the broader market in 2025. Shares of KGC have returned a staggering 106% so far this year, dwarfing the broader S&P 500 Index ($SPX), which has gained 8% over the same period [2]. The company's shares have also been rewarding investors for quite some time, with a 127% gain over the past 52 weeks [2].

Franco-Nevada Corp. (NYSE: FNV) reported a record-setting second quarter for 2025, driven by a significant rise in gold prices and strategic acquisitions [3]. The royalty and streaming company announced new highs in revenue, operating cash flow, and net income, despite a decrease in overall gold equivalent ounces (GEOs) from its diversified assets [3].

Analysts are bullish on Kinross Gold, with a consensus "Strong Buy" rating overall. UBS analysts initiated coverage on the stock with a bullish "Buy" rating and a price target of $20 [2]. CIBC analyst Anita Soni raised the price target from $21 to $22, maintaining an "Outperformer" rating [2]. Jefferies upgraded KGC stock from "Hold" to "Buy," while raising the price target from $14 to $18 [2].

Gold prices have been on the rise lately, with the iShares Gold Trust (IAU) gaining 29% so far this year. Spot gold prices have risen for a fourth-straight session, indicating a potential interest rate cut in September and the likelihood of tariffs remaining in place [2].

In conclusion, the gold market is experiencing a surge in prices and increased investor interest, driven by economic uncertainty and geopolitical tensions. Companies such as Kinross Gold and Franco-Nevada Corp. are benefiting from this trend, with strong financial performances and bullish analyst ratings.

References:

[1] https://trt.global/afrika-english/article/08e79c7b8045
[2] https://finance.yahoo.com/news/why-outperforming-gold-stock-could-154436125.html
[3] https://finance.yahoo.com/news/high-gold-prices-fueled-franco-123000982.html