Zambia, Africa’s second-biggest producer of copper, is unlikely to meet its ambitious target of producing 3 million tons by 2032, according to the Center for Strategic and International Studies (CSIS). The country is grappling with electricity shortages and constrained financing due to its debt crisis. Zambia, which defaulted on its sovereign debt during the pandemic in 2020, is struggling to secure the necessary funds to map 45% of its mining areas to attract investments. Currently accounting for 4% of global copper output, Zambia is facing a 500 MW electricity deficit caused by lower water levels at several hydropower plants. This reliance on hydroelectric power is hindering the development of the mining industry, notes CSIS .
Gold Prices Expected to Surge Amid Macro and Geopolitical Concerns
UBS analysts predict that gold prices could rise to $2,800 per ounce over the next two years due to macroeconomic concerns and geopolitical risks. This forecast places UBS approximately 10% above forward gold prices and up to 37% above lagging consensus estimates. The bank has raised its gold-price forecasts for 2025 by 21% to $2,700 per ounce, for 2026 by 34% to $2,775 per ounce, and for 2027 by 30% to $2,600 per ounce. The long-term real price of gold is now expected to be $1,950 per ounce, 11% higher than previously estimated. Currently, spot gold is priced at $2,328 per ounce.
Gold prices edged higher in the early Asian session, supported by increasing expectations of a Federal Reserve rate cut. These expectations have been bolstered by recent data showing a significant drop in U.S. job openings in April, reaching a more-than three-year low. Market analyst Rania Gule from XS.com notes that the bias for gold remains upward amid strong expectations of a Fed rate cut later this year. Traders are anticipated to wait for key U.S. data releases, including the nonfarm payrolls report due on Friday. Spot gold is currently up 0.1%, trading at $2,328.22 per ounce. 
