Surge in world gold price set to boost Zim economy

Harare- THE surge in world gold price to the historic high of USD 3400 per ounce (approximately US120 per gramme) will have positive effects on Zimbabwe’s economy since gold is one of the country’s biggest exports .

Fidelity was paying around USD80.

International economic analysts submitted that the surge in the gold price is mainly due to global uncertainty , which has led investors to seek safer assets.

“Another factor is the ongoing trade tensions between the United States and China, with new tarrifs causing fears of a global economic slowdown.

“Also put it into mind that the US dollar has weakened hence making gold more attractive to international buyers ,” said international analysts

Local analysts said naturally the increase in world gold price will have a positive knee-jerk effect on the local economy.

“We export gold if world price surges then our earnings balloon and we get the much needed foreign currency to facilitate imports and support local currency (Zig)

“However, there seems to be a policy discord on whether Zig is still gold backed due to inconsistent announcements by the monetary authorities,” said Tawanda Chimutsanyu an economist.

Other experts said it’s a major boost for small scale miners and also employment creation.

However, they are some downsides since there is possibility of gold leakages and smuggling.

Other experts said if the trend continues. gold prices might soar to USD3500 but there is need for caution since the market is unpredictable.

Meanwhile, the Ministry of Mines and Mining Development is working towards “Vision 2030,” which aims to grow the mining industry to contribute a revenue of US$12 billion annually.