Another positive factor boosting gold prices? Kenya's central bank is "actively considering" buying gold.

The governor of the Central Bank of Kenya stated that Kenya is considering including gold in its foreign exchange reserves in order to diversify its foreign exchange reserves beyond the US dollar and other currencies. During his attendance at the spring meetings of the International Monetary Fund and the World Bank in Washington, Camo Tugge said in an interview on Thursday, "We have set up a special group to study the feasibility of this, yes, this is something we are actively considering." "But I dont want to set a timeline for this." Central banks and investors around the world are hoarding gold in large quantities, driving the price of gold to new highs. Since the beginning of 2024, this precious metal has seen a strong upward trend as central banks diversify reserves to hedge against US dollar risks and safeguard against sanction threats. Recently, funds flowing into exchange-traded funds (ETFs) backed by gold have also been increasing. Tugge stated that Kenya, an East African economy, is still seeking an "existing identical" International Monetary Fund assistance program. In the current global environment of heightened risks, the program offers concessional funds and complementary policies, "is a good solution." In March of this year, Kenya prematurely terminated a four-year, $3.6 billion International Monetary Fund assistance program. Due to the failure to meet certain goals, Kenya lost about $850 million. Previously, Kenya had expressed hope that the International Monetary Fund would set more "realistic" program goals to avoid protests similar to those triggered by last year's tax plan. Tugge said, "I expect this year's finance bill to learn from last year's lessons." He also stated that after issuing euro bonds last month and completing some debt restructuring, Kenya is "not planning and not expecting to enter the international capital markets for funding for a period of time." The Central Bank Governor stated that Kenya has a "mature domestic financial market," which helps provide funding support for its fiscal budget. At the same time, Kenya is also seeking loans from other regions (like the Middle East). Relief from Pressure Tugge stated that despite the new risks brought about by the trade war initiated by US President Donald Trump, he remains optimistic about Kenya's economic growth this year. He mentioned that the Central Bank expects Kenya's economic growth rate to "far exceed" last year's estimated growth of about 4.6%, and he predicts that the US tariffs on trading partners will only reduce Kenya's economic growth rate by 0.2%. He expects that the agricultural sector will be a key support for economic growth this year, benefiting from favorable climatic conditions. Meanwhile, lower interest rates will also stimulate investment and consumption. Tugge said, "The pressure from last year has eased, and we have started to ease monetary policy."