Gold soars past $5000, benefitting bullion producers and the rand

Current rally bodes well for South Africa’s economy as jittery investors seek safe havens

- TAWANDA KAROMBO

GOLD prices rocketed past $5 000 per ounce Monday morning.

(CHATGPT AI)

THE current rally in the gold price to new higher levels above $5 000 per ounce bode well for South Africa’s economy and local bullion producers, analysts said on Monday as jittery global investors whetted their appetite for safe haven assets due to international trade and geopolitical upheavals.

Gold prices rocketed past $5 000 per ounce Monday morning as the US Dollar weakened against other international and emerging currencies. Appetite for South African assets also yielded up, with the rand breaching the R16 to the dollar threshold, leaving analysts’ eyebrows for further prospects leveled at the R15:$1 level.

Market analyst Simon Brown told Business Report that the rally in the price of gold would be beneficial for the South African economy and local gold producers. These include Pan African Resources, Sibanye-Stillwater, Harmony Gold and Gold Fields which operates South Deep mine.