Story by Stanley James, Business Editor
ZIMBABWE is poised to be among the major beneficiaries of record-breaking global gold prices, as demand for the precious metal continues to surge worldwide.
Analysts see the record global gold prices that reached an all-time high of over US$3 700 an ounce as of Friday this week as an element that will act in Zimbabwe’s favour, as one of the gold-producing economies in the world.
As reports are emerging that global investors continue to bet big on the safe-haven asset, expectations are high that Zimbabwe will also reap huge rewards.
With Fidelity Gold Refinery having so far recorded over 20 tonnes in deliveries of the yellow metal against a target of 40 tonnes by the end of the year, the favourable gold prices have seen authorities revising growth rate targets to over 6.6 %.
“There is a general consensus that the rise in the global commodity prices for the yellow metal will further raise hopes for sustained gold deliveries in a move that will spur the overall growth of the economy,” Chief Executive Officer, Bullion Group, Mr Persistence Gwanyanya said.
With the central bank revealing rebuilding of gold reserves is on track, the historic global gold prices are expected to boost assets backing the Zimbabwe Gold, which has enjoyed the longest stability since its launch in April last year.
“The impact is that the trend will further accelerate growth of the gold value chains and strengthen the Zimbabwe Gold as the central bank continues to build reserves backing the structured currency,” Development Economist, Mr Titus Mukove said.
Analysts forecast that global gold prices could rise above US$4 000, ounce by the end of the year, as the yellow metal maintains its dominance as Zimbabwe’s top foreign currency earner.
