Gold has surged to an all-time high, with spot prices reaching $3,508.50 per ounce on Tuesday, as investors flock to the precious metal in search of stability during global economic turbulence.

The price of gold has climbed nearly one-third since the start of the year, driven by trade tensions, political risks, and expectations of lower U.S. interest rates. Traditionally considered a safe-haven asset, gold’s rally accelerated earlier this year after U.S. President Donald Trump imposed sweeping tariffs that rattled global trade.

Analysts say concerns over the independence of the U.S. Federal Reserve have also bolstered demand. Trump has repeatedly criticized Fed Chair Jerome Powell and recently attempted to dismiss one of its governors, fueling fears of political interference. Derren Nathan of Hargreaves Lansdown noted that these actions are “driving renewed interest in safe haven assets including gold.”

European Central Bank President Christine Lagarde warned on Monday that undermining the Fed’s independence would pose a “very serious danger” to global economic stability, potentially triggering ripple effects across markets worldwide.

Adrian Ash, director of research at BullionVault, linked the price surge directly to Trump’s policies: “It was really the U.S. election last year that lit the fire under it.”

Unlike previous surges, where high prices discouraged buyers in major jewellery markets such as China and India, this rally has seen continued demand. Consumers in these countries are turning to investment-grade products like bars and coins, rather than reducing purchases.

Suki Cooper, a precious metals analyst at Standard Chartered, added that geopolitical uncertainty—including Russia’s invasion of Ukraine—combined with inflationary pressures and supply chain disruptions, has further lifted gold. A weaker U.S. dollar earlier this year also made gold more appealing to investors.

With multiple global pressures converging, analysts suggest gold’s momentum could continue as investors seek safety in uncertain times.

The Chief Executive Officer of the Ghana Gold Board (GoldBod), Sammy Gyamfi, has pledged that the newly formed agency will restore order and transparency to Ghana’s gold trade by curbing smuggling and streamlining operations.

Speaking on Channel One TV’s The Point of View during the Mining in Motion Summit on Monday, June 9, Gyamfi noted that extensive consultations with stakeholders showed overwhelming support for a single, central body to regulate the sector—long plagued by disorganization and regulatory gaps.

“All the patriotic Ghanaians we engaged, along with various civil society organizations, viewed the creation of GoldBod as a necessary and urgent intervention to clean up the mess,” Gyamfi said.

He explained that prior to the establishment of GoldBod, multiple state institutions were independently purchasing gold without proper coordination—creating loopholes that enabled rampant smuggling.

“With GoldBod now in place, we have one central agency regulating the sector, issuing licenses to all players, and enforcing a unified code of conduct covering responsible sourcing and legal exports,” he stated.

Gyamfi emphasized that this centralized and structured approach will not only tackle irregularities but also ensure Ghana maximizes its foreign exchange earnings from gold exports—vital for national development.

“This new system guarantees that the country receives the much-needed forex and revenue tied to gold exports, which is crucial for our economic progress,” he noted.

GoldBod was officially established under the GoldBod Act, 2025 (Act 1140), as a key part of the government’s broader strategy to curb illegal gold trading and strengthen Ghana’s foreign reserves.

President John Dramani Mahama has stated that the country has made progress recently in the ongoing fight against illegal mining, popularly known as galamsey. 

He said even though the menace was complex, the government had chalked up some successes in the quest to make galamsey a thing of the past.

President Mahama made the remarks during a courtesy call on him by the Ghana Catholic Bishops’ Conference at the Jubilee House last weekend.

During the meeting, the Catholic Bishops made some observations and recommendations, including a call on the President to declare a state of emergency on galamsey.

In response, the President emphasised that while small-scale mining was not illegal, there was a need to deter unscrupulous individuals whose actions had harmed the environment.

“It’s a very complex fight. Unfortunately, because of the lack of economic opportunities, a lot of young people who are unskilled have been forced into illegal small-scale mining as an easy avenue to make an income,” the President said.

Highlighting the scale of the crisis, the President disclosed that over 1.5 million Ghanaians were currently involved in the sector, either through artisanal mining, employment with small-scale mining companies, or directly engaging in illegal galamsey operations.

He further revealed that out of the 288 officially declared forest reserves, 44 had been encroached upon and, alarmingly, 16 per cent of the country’s forest reserves had been destroyed or degraded.

President Mahama, consequently, announced an ambitious plan to restore the degraded forest reserves through a carbon credit-supported reclamation programme, targeting areas devastated by galamsey.

“Addressing this issue will require both reclamation and rehabilitation of the affected forests.

We intend to pursue this under the carbon credit system.

When mined lands are reclaimed and forests are restored, these efforts qualify for carbon credits, which in turn can generate funds to support further reclamation work,” he said.

The President explained that the carbon credit mechanism, a globally recognised tool for incentivising environmental conservation and emissions reduction, could provide the country with the much-needed financial resources to restore its ecosystems while creating sustainable employment opportunities in green sectors.

Water bodies

The President also said that special attention was being paid to water bodies heavily polluted by illegal mining.

“The other focus for us is the mining on the water bodies because that is what is polluting the Pra River, Birim, and others.

We’ve started with the recruitment of the Blue Water Guards,” he added.

Catholic Bishops

Leading the delegation, the President of the Conference, Most Rev. Matthew Kwasi Gyamfi, expressed concern about the devastating impact of illegal mining on both the environment and Ghanaian society.

“The ecological destruction is grave, but equally dangerous is the moral and social decay that comes with it,” he warned.

Rev. Gyamfi expressed concern that what began as a subsistence activity had now grown into a national crisis.

While acknowledging the government’s ongoing efforts, the Bishop emphasised that the current crisis demanded a new paradigm, one that balanced enforcement with credible and strategic alternatives.

To this end, the Ghana Catholic Bishops’ Conference proposed a comprehensive 10-point action plan to combat illegal mining and restore integrity to the country’s natural resource governance.

Rev. Gyamfi called for an immediate audit and repeal of legislative instruments under the Minerals and Mining Act, 2006 (Act 703), including LIs such as LI 2173, LI 2192, and LI 2264, which he said had enabled unchecked and unregulated mining.

State of emergency

Among other proposals, he proposed an immediate freeze on new artisanal and small-scale mining licences until a comprehensive or full review of the environmental and social impact assessment had been undertaken.

To that end, the Catholic Bishops called on the government to declare a limited state of emergency in the most affected zones to suspend all mining activities temporarily.

Rev. Gyamfi advocated a limited state of emergency in mining-devastated zones or affected areas to suspend all operations, deploy military engineering units for land reclamation and restore lawful governance structures.

He also urged the government to form mining task forces at the district level that must include civil society and church representatives to monitor local operations, report breaches, and ensure transparency and community participation.

The Catholic Bishops said the government must conduct independent regular environmental public audits to assess environmental damage, social benefit delivery and the legal compliance of existing mining concessions.

Source: Graphic online