In April 2025, gold prices surged to an unprecedented high of approximately $3,500 per ounce, driven by a confluence of geopolitical and macroeconomic pressures. LIMS explained that investors, wary of escalating global instability—including the protracted trade war, renewed tensions in the Middle East, and the ongoing conflict in Ukraine—have flocked to traditional safe-haven assets, propelling bullion prices to record levels. Central banks have also intensified gold purchases, diversifying away from the US dollar amid mounting concerns over its declining value. The weakening of the greenback has further amplified demand, reinforcing gold’s role as a hedge against both currency depreciation and systemic uncertainty.

For Lebanon, one of the world’s largest holders of gold relative to the size of its economy, LIMS argued that the rally offers a strategic opening. Amid its ongoing financial crisis and persistent monetary instability, the country could leverage its reserves by establishing a currency board backed by gold. This currency board could restore monetary credibility, anchor inflation expectations, and attract capital inflows—offering a path to economic recovery grounded in hard assets.

A gold-backed currency board would tie the local currency to a fixed quantity of gold, limiting discretionary monetary expansion and insulating the system from political interference. With global gold valuations at historic highs, such a move could enhance Lebanon’s credibility and serve as a stabilising force in an otherwise fragile financial landscape.

• Gold’s Rise Beyond Expectations, Will It Change The Economic Rules? April 25, 2025: VDL, Audio Interview AR