Gold prices have continued their meteoric rise, breaching the $100-per-gram mark globally, with spot gold reaching a record $100.55/g (US$3,126.97/oz) during Monday’s morning trade, Mining Zimbabwe can report.
By Rudairo Mapuranga
The rally, driven by heightened geopolitical tensions and economic uncertainty, is expected to bring significant benefits to Zimbabwe’s gold mining sector.
At the same time, Zimbabwean gold producers are witnessing record prices from Fidelity Gold Refinery (FGR). As of April 1, 2025, FGR is offering $94.64/g for gold of 90% purity and above, while fire assay cash prices stand at $95.14/g. Small-scale miners, who contribute the bulk of Zimbabwe’s gold production, are set to benefit significantly, particularly as the country pushes for increased deliveries to formal channels.
The latest surge in gold prices is attributed to concerns surrounding U.S. President Donald Trump’s aggressive tariff policies, global economic instability, and inflation fears. As a result, investors are rushing toward gold as a safe-haven asset, pushing the metal’s annual gains to 18% so far in 2025.
For Zimbabwe, where gold is the backbone of foreign currency earnings, this rally presents a golden opportunity. Higher prices incentivize more deliveries to FGR, potentially reducing smuggling and boosting government revenues. This is particularly crucial as Zimbabwe works towards its US$12 billion mining industry target, where gold plays a leading role.
Several leading financial institutions have revised their gold price targets upwards. Goldman Sachs now projects prices could hit $106.08/g ($3,300/oz) by year-end, while Bank of America’s previous target of $98.50/g ($3,063/oz) has already been surpassed. Some extreme forecasts suggest that in a worst-case economic scenario, gold could even skyrocket to $144.76/g ($4,500/oz).
According to analysts at OCBC Bank, “Gold’s appeal as a safe haven and inflation hedge has further strengthened amid geopolitical concerns and tariff uncertainty.” This sentiment is echoed by Marex consultant Edward Meir, who predicts that “tariff issues will continue driving prices higher until there is some finality to the tit-for-tat campaign.”
With global central banks increasing their gold reserves and investor demand soaring, Zimbabwean gold producers stand to benefit immensely. However, challenges remain, including power shortages, foreign currency retention policies, and smuggling. Industry players are urging authorities to align local pricing policies with global market trends to ensure miners get maximum value.
If the current rally continues, 2025 could be a record-breaking year for Zimbabwe’s gold sector, with increased output, higher export revenues, and a stronger contribution to the national economy.
