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Saturday, June 15, 2024

International commodity prices bull run continues

Story by Davison Vandira

ZIMBABWE is expected to derive maximum benefits from the gold market which has continued with its bull run as it traded solidly above the US$2 000 mark sparked by the de-dollarisation frenzy that is sweeping across the global economy.

The century-old dominance of the United States dollar is being challenged on several fronts by countries choosing to conduct trade in their own currencies including the five leading economies of BRICS who want to establish their own currency.

This has in turn catapulted commodity prices to record highs over the past few weeks.

The global de-dollarisation has benefited precious minerals, especially gold which is a safe haven for investors in periods of uncertainty.

Consequently, the yellow metal has broken records as it traded solidly above US$2 000 an ounce this Wednesday.

According to market watchers, these global developments are a silver lining for Zimbabwe as minerals are key foreign currency earners for the country with mineral production directly supporting the livelihoods of many Zimbabweans through employment creation and generation of forex.

This comes in a year Zimbabwe is targeting to double gold output from 37 tonnes realised in 2022 with the high prices expected to be an effective stimulant for the mining sector to achieve its US$12 mining industry by the end of the year.

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