Gold Market Insights: Mamadou Toure Explains Recent Price Correction And Opportunities Of Tokenized Gold

In Brief

Gold has recently corrected due to profit-taking, a stronger US dollar, and rising real yields, while Mamadou Toure emphasizes that this volatility reflects tactical repositioning and presents opportunities for institutional investors.

Over the past week, gold has fallen by 1.2% to $4,022 per ounce following record highs on October 20th, with additional pressure coming from a strengthening US dollar

Mamadou Toure, CEO and Founder of Ubuntu Tribe, which offers gold tokenization through GIFT Gold, shared his insights on the current market conditions, discussing the factors contributing to the decline and offering perspectives on potential future trends for the asset.

“Recent gold price swings reflect a tactical adjustment, not a breakdown of its core value thesis, and more about structural repositioning in a changing macro- and institutional-finance environment,” said Mamadou Toure to Mpost.

He identified several factors behind the change. First, the valuation of gold had stretched after an extended rally, prompting a period of natural consolidation. Second, a stronger U.S. dollar and rising real inflation-adjusted yields reduce the appeal of a non-yielding asset like gold, as its prices tend to move inversely with real yields. Third, after a prolonged run-up, many investors take profits, and derivative or hedge flows adjust ahead of major events. Fourth, and importantly from an emerging-markets and African perspective, the demand structure is evolving: central banks in Africa are actively accumulating gold as part of reserve diversification.

“In terms of interpretation, it’s crucial not to confuse this volatility with the collapse of the structural case for gold. Rather, I view the correction as a recalibration within a broader bullish structural framework. For an institutional investor, the key is to distinguish between short-term noise and medium-to-long-term structural shifts,” said the expert.

He further noted that the fact that we’re seeing volatility now doesn’t invalidate gold’s role; it suggests a moment of repositioning. From that perspective, it may even present a tactical opportunity to review exposure and entry points, rather than abandoning the asset class altogether. This moment should be seen less as a warning and more as a window — especially for institutional allocators with long-term strategies.

Gold Profit-Taking As Portfolio Rebalancing Amid Political Tensions And Economic Uncertainty

Contemplating why profit-taking is occurring now despite ongoing political tensions and economic uncertainty, Mamadou Kwidjim Toure said that the question highlights the apparent paradox of de-risking in an environment of elevated uncertainty.

“From an institutional finance perspective, several things are converging. After the strong rally in gold, many funds and traders are locking in gains. The momentum was strong, so some participants are simply harvesting profits,” he said to Mpost. “At the same time, after pricing in macro risks, the remaining upside for gold appears narrower, prompting capital rotation into higher-yielding assets: many of the key macro risks (inflation, currency weakness, central-bank diversification) are already priced in, so the opportunity cost of holding non-yielding gold may seem elevated relative to other asset classes,” he added.

Furthermore, derivative and liquidity flows are also important: in advance of key events, such as policy meetings or inflation releases, some participants reduce exposure to limit risk, which can drive selling even when fundamentals remain unchanged. It is also worth noting that in parts of Asia, a major region for physical gold demand, post-festival or seasonal consumption dips can reduce near-term physical demand, influencing market sentiment.

“Summarising, profit-taking now does not necessarily reflect a repudiation of the gold thesis. It reflects normal portfolio rebalancing rather than a rejection of gold’s role.”

The latest US CPI data came in as expected, prompting the Federal Reserve to cut interest rates by 25 basis points.

“Eventual easing may favor gold by lowering opportunity cost and weakening the dollar. For institutional buyers, this means: watch the data releases, but more importantly anticipate the market reaction and potential dislocations,” he said.

“In my view, these moments are less about timing and more about positioning. In a structural context where central-bank accumulation, currency volatility, and emerging-market hedging remain relevant, institutions could use dips (triggered by macro disappointment) as strategic entry points,” Mamadou Kwidjim Toure shared.

Gold Tokenization: Bridging Physical Assets And Digital Innovation

As physical gold becomes increasingly strategic and paper gold markets grow more complex, tokenization introduces a third path — combining real backing with digital agility, Mamadou Toure said

“On one side, we observe central banks in Africa and elsewhere increasing their physical holdings as part of reserve diversification and monetary-sovereignty strategies. On the other side, paper gold markets, such as futures and ETFs, have grown large relative to actual physical flows, introducing structural tensions or disconnects between what happens on paper and what happens in vaults. In this environment, tokenization offers an alternative pathway,” he noted

Mamadou Toure further emphasized that one of the key shifts is fractional access and a broadened investor base

“Whereas physical bullion often required large minimums and imposed a storage burden, tokenization enables small increments and mobile-first access. Second is digital transferability and borderless settlement, especially in emerging markets, including Africa, where banking infrastructure or cross-border settlement may be limited. Token-based ownership offers greater agility. Third, for investor confidence, the link between the token and audited, insured, vault-backed physical gold is essential, as it bridges institutional standards with fintech innovation.”

The institutional implications of tokenized gold were also highlighted

“From a treasury or hedge perspective, tokenized gold doesn’t replace physical bullion for major reserve holders, but it offers a complementary layer that is liquid, scalable, and digital-friendly. It aligns with treasury diversification, liquidity management, and emerging-market access. Additionally, this innovation supports financial inclusion by providing gold-based hedging or wealth preservation to markets where traditional access is limited. Tokenization of real-world assets increasingly offers improved access, efficiency, and transparency.”

Mamadou Toure concluded, “I’d like to emphasize: this is not simply about disruption but evolution. The infrastructure must meet institutional standards, including custody, audit, vaulting, and regulatory clarity. Tokenization is bridging the analog and digital, not abolishing the analog.”

“Platforms like GIFT Gold don’t disrupt physical gold markets — they digitize trust, expand access, and create new layers of utility around one of the world’s oldest assets. This offers institutional investors and emerging market participants a new dimension of access and hedging, while maintaining rigorous asset-backed underpinnings,” he added