- Absa’s NewGold ETF on the NSE is trading 3.75% higher, with buying volumes at their strongest level since 2022
- Gold prices have surged to a record $5,537 per ounce, equivalent to KES 708,736, as precious metals’ rally accelerates
- The ETF still trades below its KES 9,800 all-time high, leaving room for renewed investor positioning
Kenya gold investors are turning their attention towards the Absa NewGold ETF (NSE: GLD) following a recent surge in gold prices. While the precious metal has retraced sharply from an all-time high of $5,600 to trade at $5,237 at press time, GLD saw its biggest trading volumes on Thursday and closed the day trading at KES 6,265.
Absa Gold ETF Sees Strong Buying From Kenya Investors
The Absa NewGold ETF (NSE: GLD) is experiencing its strongest buying volumes since 2022, according to TradingView data. The product closed the day trading at KES 6,265, still below its KES 9,800 all-time high reached during the October gold rally, suggesting investors are positioning ahead of further price movements.
The ETF provides direct exposure to gold bullion without requiring physical ownership. Speaking during the launch, Absa Kenya said the listing of the gold ETF would expand access to alternative assets for regional investors.
“Investors within Kenya and indeed, the wider East African region now have an opportunity to trade in ETFs following the launch and listing of the Barclays NewGold ETF on the Nairobi Securities Exchange,” the bank said in its launch statement.
The ETF tracks the real-time price of gold bullion and trades like a regular equity security on the NSE. It is KES-denominated, subject to similar tax treatment as listed equities, and each unit represents approximately 1/100th of an ounce of physical gold, held in secure custody on behalf of investors.
Jeremy Awori, then Managing Director of Barclays Bank of Kenya, said the product responded to strong market demand.
“NewGold ETF will introduce depth and range to the NSE, further entrenching the Exchange as the undisputed regional financial hub,” Awori said, adding that interactions with brokers and fund managers showed “the market is hungry for this product.”
Kenya became the seventh market within the Barclays Africa Group to list the NewGold ETF, joining South Africa, Nigeria, Ghana, Mauritius, Botswana, and Namibia. At the time of listing, 400,000 units valued at nearly KES 500 million were made available, with room for expansion based on investor demand.
Gold, Silver, and Copper Prices Surge to Record Levels
The renewed interest in gold-linked products comes amid an unprecedented rally across the precious metals and commodities complex. Gold prices recently climbed to record highs, adding an estimated $3.5 trillion to the metal’s market capitalization earlier this week, according to market data.
Silver has also seen explosive gains, with prices rising above $120 per ounce for the first time in history, up 68% this month alone. Copper prices have followed suit, surging to their highest level on record and gaining an additional 9% this month.
Market participants point to a combination of global monetary uncertainty, currency volatility, and increased demand for hard assets as drivers of the rally. The price movements have spilled into local markets, where Kenyan investors have recently rotated between equities and alternative assets, including gold ETFs, amid sharp moves in stocks such as Kenya Airways, which recently surged to multi-year highs.
According to the NSE, exchange-traded funds like NewGold allow investors to diversify portfolios while maintaining liquidity.
“ETFs allow investors to spread their risk, diversify their portfolio, and have ease of purchase and exit,” said NSE Chief Executive Geoffrey Odundo, noting that the exchange continues to support ETF growth through investor education programs.
How Else Can Kenya Investors Invest in Gold?
Beyond the Absa Gold ETF, investors in Kenya have several other avenues to gain exposure to gold, depending on risk appetite and investment horizon.
One option is the purchase of physical gold, including bullion bars and gold coins, typically sourced through licensed dealers. While physical ownership provides direct exposure, it comes with added costs related to storage, insurance, and security.
Another route is investing in gold mining stocks, particularly large, US-listed companies that benefit from rising gold prices. Some of the most widely held global gold miners include Newmont Corporation and Barrick Gold, both of which are listed on the New York Stock Exchange and generate revenues tied closely to bullion prices.
Kenyan investors can also access gold exposure through international brokerage accounts, depending on regulatory and compliance requirements. This comes as the country continues to refine its investment and digital asset framework, following recent developments around crypto and digital asset regulations in Kenya, which have shaped broader investor participation across alternative markets.
What Comes Next for Gold Investors?
With gold prices holding near record highs and NewGold ETF trading volumes on the NSE at strong levels, market participants are closely watching whether the rally in precious metals sustains. The performance of gold-linked products such as the Absa Gold ETF will remain closely tied to movements in international bullion markets, currency dynamics, and overall investor demand.
