African Producers Hope For Boost From Gold Surge

The price of gold has hit record highs as global investors rotate out of the US dollar and into the 'safe haven" commodity, raising hopes that Africa's gold-exporters could see a boost to their economies.

Gold is now trading at a historic high of around 3,350 per troy ounce and has strengthened by more than 25 since the start of the year. The price of gold appears to be benefiting from reduced confidence in the US dollar as a result of President Trump imposing sweeping universal tariffs.

Indeed, the ICE US Dollar Index, the leading benchmark for measuring the international value of the dollar, is down over 8 since January.

While the greenback or dollar-denominated assets such as Treasury bills tend to be perceived as extremely safe investments, political and economic risks in the US have caused some investors to reconsider - and opt instead for gold.

Oliver Blagden, a gold and base metals analyst at CRU Group in London, tells African Business that "confidence in the US dollar is definitely a major contributor driving gold prices."