Global gold prices climbed to historic highs yesterday, with the precious metal touching the US$5 000-per-ounce mark as investors rushed to safe-haven assets amid growing geopolitical tensions.
By yesterday morning, gold was trading about 2,2 percent higher at roughly US$5 089 an ounce, after earlier peaking at an all-time high of around US$5 110.
The surge caps an exceptional rally for gold, whose value has risen by close to 90 percent since former United States President Donald Trump took office in January last year, driven largely by global economic uncertainty.
For Zimbabwe, gold remains a cornerstone of the economy. It is the country’s biggest source of export earnings and foreign currency inflows, plays a central role in supporting the local currency, and sustains thousands of livelihoods across the mining value chain.
The Zimbabwe Gold (ZiG) currency, launched in April 2024, is backed by gold and foreign currency reserves. Authorities say this backing has helped stabilise the economy and strengthen confidence in the domestic monetary system.
Economic analyst Mr Persistence Gwanyanya said rising gold prices are expected to provide a major boost to Zimbabwe’s economic performance this year.
He noted that strong prices favour countries with bullion-based economies, adding that Zimbabwe stands to benefit significantly if the rally continues.
“This is very positive for the country, especially given our reliance on gold. The outlook suggests prices will remain firm for much of the year, which should support economic growth,” Mr Gwanyanya said.
He added that higher gold earnings are already spilling over into other sectors, including construction and related industries, stimulating broader economic activity.
Zimbabwe also exceeded its 2025 gold production target last year, largely due to increased output from artisanal and small-scale miners. By December, total deliveries had surpassed 46,7 tonnes, with small-scale producers contributing about three-quarters of the output.
Mr Gwanyanya said the Government is expected to benefit from increased revenues as global prices rise but stressed the need to turn the windfall into long-term economic gains.
He also called for better organisation and support for artisanal and small-scale miners to ensure sustained growth and improved returns for the country.
