Global gold prices have surged to historic highs, reaffirming the metal’s long-standing status as a safe haven in times of economic uncertainty.
According to the World Bank Commodity Price Data, gold prices rose sharply over the past three years, averaging US$1 702 per ounce in 2023 before climbing to US$2 074 per troy ounce in 2024.
The rally intensified in 2025, with annual average prices reaching an unprecedented US$2 964 per ounce, reflecting heightened geopolitical risks, persistent inflation concerns, and strong investment demand.
This price momentum has been reinforced by robust global demand, with the World Gold Council reporting total gold demand of more than 4 400 tonnes, driven largely by sustained central bank purchases and increased investor allocations. By January 30, 2026, gold prices remained elevated.
For Zimbabwe, a country where gold remains the single largest export earner, this development presents both a timely opportunity and a complex policy challenge.
According to the World Gold Council, Zimbabwe ranks 21st globally in gold production.
Within Africa, the country is ranked 9th in terms of gold production and 10th in terms of central bank gold reserves.
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According to Fidelity Gold Refinery Zimbabwe’s gold production rose by 17% to reach an all-time high of 46,7 tonnes in 2025 — exceeding its annual target of 40 tonnes, up from 36,48 tonnes in 2024.
While these achievements reflect positive momentum in the gold sector, maximising their contribution to macroeconomic stability requires continued strengthening of systems that support value retention and formal market participation.
Translating high gold prices into macroeconomic stability is far from automatic. Structural challenges in the gold sector —particularly smuggling, under-declaration, and leakages from artisanal and small-scale mining — continue to dilute the full benefits of the commodity boom.
Without effective incentives for formalisation and transparent marketing arrangements, a significant portion of gold earnings risks remaining outside the formal financial system, limiting its positive impact on exchange rate stability.
At the same time, the global commodity upswing has contributed to the appreciation of the South African rand. As South Africa’s export basket is heavily commodity-based, stronger prices for gold and other minerals have supported the rand against major currencies.
For Zimbabwe, whose economy is closely intertwined with South Africa through trade and financial linkages, a stronger rand has mixed implications.
On the one hand, rand appreciation can raise the cost of imports from South Africa, potentially adding to domestic inflationary pressures given Zimbabwe’s high dependence on imported goods.
On the other hand, it may improve the relative competitiveness of Zimbabwean exports in the regional market, while also influencing pricing behaviour in an economy where the rand is widely used for transactions.
The interaction between higher gold prices, regional currency movements, and Zimbabwe’s exchange rate highlights the multifaceted nature of macroeconomic management.
Gold inflows can play an important role in easing foreign currency pressures and supporting stability, particularly when complemented by sustained policy coordination and confidence-enhancing measures.
Over time, such alignment strengthens the link between export performance and exchange rate stability.
Looking ahead, the current gold rally presents a strategic opportunity for Zimbabwe to move beyond short-term gains.
Strengthening gold value chains, intensifying local beneficiation interventions, tightening controls against smuggling, and ensuring predictable exchange rate policies could help convert favourable global conditions into durable economic stability.
Without such reforms, the benefits of high gold prices may prove fleeting, leaving the economy exposed once global conditions inevitably shift.
In a world where gold continues to shine brightly, Zimbabwe’s challenge is clear: to ensure that the glow of rising prices translates into lasting economic resilience rather than another missed opportunity.
- Mavodyo is a Senior Lecturer in Economics at the University of Zimbabwe and an economic policy consultant.
