Gold prices are on a meteoric rise, fueled by escalating global trade tensions and inflation concerns. As of today, the international price of gold stands at US$93.85 per gram, with analysts predicting that the precious metal could hit the US$100/g mark this year, Mining Zimbabwe reports.
By Rudairo Mapuranga
This upward trajectory is mirrored in Zimbabwe’s local market, where the country’s sole gold buyer and exporter, Fidelity Gold Refinery, is offering US$88.24 per gram for gold with a purity of 90% and above.
The recent surge in gold prices follows the announcement by former U.S. President Donald Trump of an additional 25% tariff on all steel and aluminium imports. The tariff hikes, along with plans to impose reciprocal tariffs later this week, have created a perfect storm of uncertainty in the global trade environment, pushing demand for safe-haven assets like gold higher.
“Obviously, the tariff war is behind the rise; it just reflects more uncertainty and more tension in the global trade situation,” said Marex analyst Edward Meir in a recent note. The threat of further tariffs could exacerbate inflation within the U.S., causing ripple effects in global markets.
Investors are now closely watching U.S. economic data, with the Consumer Price Index (CPI) and Producer Price Index (PPI) due for release later this week. According to Meir, if inflation data underperforms, the U.S. dollar could weaken, further inflating gold prices. However, if inflation surprises on the upside, higher U.S. yields could strain gold’s momentum, although the metal’s market resilience might mitigate these effects.
Gold has already set a new record seven times this year, marking a nearly 11% rise in 2025, following a 27% gain in 2024. Analysts believe the yellow metal is now gaining enough momentum to target the US$3,000 per ounce milestone on the New York Mercantile Exchange, a level that could translate to over US$100 per gram on the international market.
“Gold is very clearly targeting the $3,000 level and the market is incredibly strong, almost relentless. Now it’s only a question of when it will scale the level and not if it will,” said independent analyst Ross Norman.
The U.S. trade war has further deepened concerns, with unusually high premiums for gold contracts in New York. Central banks, particularly China’s, are also playing a pivotal role, with the People’s Bank of China increasing its gold reserves for the third consecutive month in January.
“With China resuming its bullion purchases and allowing insurance funds to invest in gold, these moves further bolster the bullish momentum,” said Han Tan, chief market analyst at Exinity Group.
While the international price of gold edges closer to US$100 per gram, Zimbabwe’s local market, regulated by Fidelity Gold Refinery, is keeping pace. The latest rates are:
- SG 90% and above: US$88.24 per gram
- SG 85% to below 90%: US$87.31 per gram
- SG 80% to below 85%: US$86.37 per gram
- Fire Assay Cash Price (above 100g): US$88.71 per gram
Local prices reflect the global inflationary pressures and uncertainties stemming from the trade war. Zimbabwe’s gold producers, especially small-scale miners, are benefiting from the global rally, despite paying royalties of 1% for small-scale miners and 5% for primary producers.
With central banks ramping up purchases and market analysts predicting further economic disruptions from trade policies, gold seems poised to surpass US$100 per gram this year. This would represent a historic milestone for the precious metal, which continues to outperform most other asset classes globally.
JPMorgan Chase, Goldman Sachs, and Citigroup are all bullish on gold’s prospects, with price targets ranging from US$2,950 to US$3,000 per ounce by the end of 2025.
Gold’s remarkable ascent, driven by a cocktail of inflation, trade wars, and central bank purchasing, is cementing its status as the ultimate safe-haven asset in an era of global uncertainty.
