SURGING gold prices are generating substantial benefits across emerging economies, strengthening investor confidence in nations that produce and accumulate the precious metal, said Bloomberg News on Monday.
South African mining stocks are experiencing their strongest performance in two decades, with shares in Sibanye Stillwater, AngloGold Ashanti and Gold Fields tripling in value, the newswire said. Ghana, Africa’s leading gold producer, has received a credit rating upgrade from Moody’s.
The rally is creating a wealth effect for both bullion producers and buyers, encouraging greater investment flows into these markets, said Bloomberg News. Goldman Sachs recently cited South Africa’s mining sector strength as a primary reason for anticipated gains in the country’s bonds and equities.
“The rally in gold is beneficial for a small group of countries in emerging markets such as Uzbekistan, Ghana and South Africa,” said Daniel Wood, portfolio manager at William Blair Investment Management. “The wider story of the rising gold price is that investors are increasingly looking for alternative investments away from the more traditional developed market currencies, particularly the US dollar,” he added.
South Africa’s FTSE/JSE Africa All Shares Index has climbed over 30% in 2025, whilst the rand trades near a one-year high. Ghana’s cedi has strengthened 38% this year, the largest global increase, following the nation’s 2022 debt default and subsequent recovery under President John Mahama.
Investors are monitoring Poland, Turkey and Kazakhstan, which have been expanding their gold reserves.
“The rally does benefit emerging markets more than developed markets,” said Ning Sun, senior emerging markets strategist at State Street Markets. “Emerging markets not only produce gold, they also hoard the metal,” she added.
