Gold miners hunt offshore assets as prices spike

Gold prices have risen sharply on the back of inflationThe rate at which prices rise across an economy. fears from the Iran oil shock and geopolitical risk premium. With central banks signaling higher rates to combat imported inflation, the real yield on gold has compressed, making the metal attractive as a store of value and hedge. Barrick Gold, the world's third-largest producer, has announced a USD 3 billion share buybackA company repurchasing its own shares from the open market. authorization, signaling management confidence in the commodity outlook and a belief that its shares are undervalued relative to gold's trajectory.

More notably, China's Zhaojin Mining is aggressively scouting for gold acquisitions in Africa and Central Asia, specifically targeting assets that Western mining firms have divested under ESG or sanctions pressure. Chief Investment Officer Xu Jianzhuo confirmed the company is eyeing new copper projects alongside gold. This M&A wave reflects a structural shift in global mining: Western constraints (ESG restrictions, China sanctions risks, operational costs) are opening doors for state-backed and emerging-market players to consolidate reserves at attractive prices. Zimbabwe's sovereign wealth fund is seeking USD 250 million to expand gold mining operations, adding to emerging-market bullishness.

Cross-asset implications: if inflationThe rate at which prices rise across an economy. persists and central banks tighten, gold will continue to outperform in nominal terms but struggle on real yields. Meanwhile, copper has also rallied sharply (now near 3-month highs at USD 13,619/t), as emerging-market demand for AI infrastructure and EV buildouts remain robust despite macro headwinds. However, India's Modi has explicitly asked citizens to avoid gold purchases for a year to preserve foreign-exchange reserves, a notable demand destruction signal from the world's largest gold consumer.

The debate centers on whether the gold rally is driven by true inflationThe rate at which prices rise across an economy. hedge demand or by short-covering and momentumThe empirical fact that winners keep winning over the medium term.. If the Trump-Xi summit yields a geopolitical thaw and oil prices ease, gold could pull back sharply as real yields normalize. Conversely, if the Iran conflict hardens and central banks genuinely tighten, gold has further upside. The fact that Modi is asking Indians to pause gold buying suggests emerging-market FX pressure is becoming acute; this could limit demand upside for gold miners in Asia.