Bullion Price Dip Drives Reduction in BoG Gold Coin Prices
A decline in the price of gold on the global market has led to a reduction in the prices of Bank of Ghana’s Gold Coin.
This marks the third decline in the prices of the Gold Coin in Cedi terms.
Gold price per the London Bullion Market Association (LBMA) at the close of Thursday, December 19, 2024, had fallen to $2,592.05 from a high of $2,684.35 the previous week.
On the back of the decline in gold price, prices of BoG’s gold coin minted in three denominations – 0.25oz, 0.50oz, and 1oz fell to GHS 10,617, GHS 20,371, and GHS 39,937 at an exchange rate of $1 to GHS 14.70.
In the previous week, prices of BoG’s Gold Coin were GHS 10,933, GHS 21,004, and GHS 41,206 for the 0.25oz, 0.50oz, and 1oz respectively.
Gold prices last Thursday, rallied weakly from a slump to a 4-week low beneath $2600 per troy ounce in London after the US Fed cut Dollar interest rates.
Gold prices, however, extended gains on Friday, supported by a softer dollar and Treasury yields after U.S. economic data indicated a slowdown in inflation, although the Federal Reserve’s hawkish interest rate outlook kept bullion on track for a weekly loss.
Spot gold was up 1.2% at $2,624 per ounce and U.S. gold futures settled 1.4% up at $2,645.
The reduction in prices makes the gold coins more accessible to investors, potentially stimulating demand in the short term. However, it also highlights the sensitivity of the gold coin to fluctuations in global gold prices and exchange rate dynamics.
