An Emerging Markets Bonus Comes With Gold’s Historic Rally
Gold’s unstoppable rally is proving to be a game changer for emerging markets, fueling optimism and unlocking new opportunities for both investors and national economies tied to the precious metal.
In South Africa home to some of the world’s deepest and most productive gold mines the impact has been striking. The nation’s stock market is on track for its best performance in two decades, with shares of major mining firms such as Sibanye Stillwater Ltd., AngloGold Ashanti Plc, and Gold Fields Ltd. soaring, in some cases tripling in value.
Meanwhile, Ghana, Africa’s top gold producer, recently saw its credit rating upgraded by Moody’s Ratings, signaling renewed confidence in its financial stability. Across the developing world, central banks have been adding to their gold holdings, strengthening national reserves and investor sentiment alike.
For money managers focused on emerging markets, this surge in gold prices is an added incentive to stay bullish. The rising value of gold is creating a wealth effect for both producers and buyers, reinforcing the appeal of assets linked to the metal. Goldman Sachs strategists recently highlighted South Africa’s strong mining sector as a key reason they expect continued strength in the country’s bonds and equities.
“The rally in gold is particularly favorable for a select group of emerging economies, including Uzbekistan, Ghana, and South Africa,” explained Daniel Wood, portfolio manager at William Blair Investment Management. “The broader takeaway from gold’s rise is that investors are diversifying away from traditional developed-market currencies, especially the U.S. dollar.”
Wood added that he remains optimistic about Uzbekistan’s currency, given the nation’s dual advantage as a leading bullion producer and holder of substantial gold reserves. He also noted that the metal’s strength has played a central role in South Africa’s remarkable market recovery this year.
Indeed, South Africa’s FTSE/JSE Africa All Share Index has climbed more than 30% in 2025. The rand is hovering near a one-year high, while yields on 10-year government bonds have fallen below 9% their lowest point in more than seven years. Cooling inflation has given the South African Reserve Bank room to lower interest rates, adding further momentum to the country’s turnaround story.
For a nation long plagued by political instability and chronic power shortages, the resurgence marks a dramatic shift in investor confidence.
Ghana is also enjoying a revival on the back of the gold boom. After facing a severe economic crisis in 2022 that led to a debt default, the West African country has staged an impressive comeback under President John Mahama. The Ghanaian cedi has appreciated roughly 38% this year, making it the world’s best-performing currency. The rebound in gold prices has been instrumental in restoring fiscal stability and attracting investor interest back to the region.
Other emerging economies are taking note. Countries such as Poland, Turkey, and Kazakhstan have been quietly expanding their gold reserves, seeking to diversify away from volatile currencies and safeguard their balance sheets. However, not everyone believes this trend guarantees lasting financial strength.
“Having a larger share of gold in national reserves certainly helps with perception,” said Alexis de Mones, fixed-income portfolio manager at Ashmore Group Plc. “But investors shouldn’t assume that rising gold prices automatically translate into stronger credit fundamentals.”
De Mones pointed out that the broader backdrop is equally important: gold’s ascent is coinciding with a weaker U.S. dollar and easier global financial conditions a combination that historically benefits developing markets. This perspective is shared by Ning Sun, senior emerging-markets strategist at State Street Markets in Boston.
According to Sun, gold rallies typically occur during periods of market stress when investors shun riskier assets. This time, however, the relationship is playing out differently. With the dollar under pressure and uncertainty surrounding U.S. economic policy, emerging markets are attracting renewed attention and capital inflows.
“This rally is clearly working in favor of emerging markets more than developed ones,” Sun explained. “Not only do these countries produce significant amounts of gold, but they also tend to hold it as part of their long-term reserves. That combination is proving especially powerful right now.”
In short, gold’s powerful momentum is doing more than lifting prices it’s reshaping the investment landscape across emerging economies. From South Africa’s revitalized markets to Ghana’s fiscal recovery and Uzbekistan’s growing appeal, the precious metal’s resurgence is fueling confidence and creating new tailwinds for regions long overlooked by global investors. If gold’s rise continues, emerging markets could remain some of the biggest beneficiaries of this glittering rally.
