Gold Under Pressure - and in Demand
Gold, from geological asset to strategic commodity
Gold is found across all continents, but production remains concentrated in a limited number of countries. The largest producers today include China, Russia and Australia, while Peru ranks among the top global sources (around 7th worldwide).
Its value goes beyond its physical presence. Historically, gold formed the basis of the monetary system under the gold standard, and it remains a reference point for financial stability. Its scarcity, durability and universal acceptance make it a safe haven asset, particularly in times of geopolitical or economic uncertainty. When volatility increases, capital tends to return to gold as a store of value.
A changing industry
Gold mining has evolved significantly over the past decades. Where the sector was previously associated with informal and unregulated activity, there is now a clear shift towards structured, compliant and transparent operations.
Regulatory frameworks have strengthened, with increased focus on environmental standards, worker safety and traceability. International buyers and refineries require strict documentation on origin, chain of custody and compliance, aligning with global anti-money laundering (AML) standards and responsible sourcing guidelines.
At the same time, continuous innovation in mining techniques, refining processes and assay methods allows for higher efficiency and the delivery of consistently high-purity material. The sector is gradually repositioning itself as a more controlled and accountable part of the global supply chain.
Peru: Resource base, compliance & development
Peru holds one of the richest mineral bases globally, with gold as a key component alongside copper, silver and zinc. The country also hosts a range of strategic and rare metals such as lithium, molybdenum, tin, tungsten and other rare earth elements, all critical for electronics, energy storage and industrial applications.
Despite its strong production capacity, a significant portion of Peru’s mineral potential remains underexplored. At the same time, the logistical framework — from extraction to export — continues to develop, supported by investments in infrastructure and trade corridors.
Compliance is becoming increasingly central. Exporting gold today requires strict documentation, including origin certification, traceability records, assay reports and full AML/KYC compliance. Initiatives such as REINFO aim to formalize small-scale miners, bringing more operations into the legal framework and improving transparency across the supply chain.
Foreign investment remains strong, driven by resource quality and long-term supply potential, while regulatory pressure continues to push the sector towards higher standards.
Market dynamics & recent volatility
Gold prices have shown a strong upward trend, supported by geopolitical tensions, inflation concerns and instability in energy markets.
A short-term correction observed recently can be largely explained by liquidity-driven selling. In periods of market stress, institutional investors may be forced to liquidate gold positions to meet margin calls or rebalance portfolios. This is often triggered by volatility in other asset classes, including energy markets affected by disruptions such as the Strait of Hormuz.
A stronger US dollar also plays a role, as it tends to create short-term downward pressure on gold prices. These movements are typically technical and do not reflect a weakening of underlying demand.
Outlook
Looking forward, several elements point towards continued structural support for gold prices.
First, geopolitical uncertainty and fragmentation of global trade flows are likely to persist, maintaining demand for safe-haven assets. Second, central banks — particularly in emerging economies — continue to increase gold reserves as part of diversification strategies away from traditional currency exposure.
At the same time, supply growth remains relatively constrained. New mining projects require long development cycles, while regulatory and environmental requirements are becoming stricter. This limits the ability of supply to respond quickly to increased demand.
In the short term, price volatility can be expected to continue, influenced by currency movements (particularly the US dollar), interest rate expectations and broader liquidity conditions in financial markets.
Stabilization is more likely once energy markets normalize and macroeconomic uncertainty reduces. However, under current conditions, gold is expected to remain structurally supported at elevated levels compared to historical averages.
In that context, Peru (combining resource availability with a gradual shift towards formalization and compliance) is positioned as a relevant and increasingly reliable partner within the global precious metals supply chain.
