Gold News

Zimbabwe increases gold price again

The central bank of Zimbabwe has again increased the price it is prepared to pay for gold, in a bid to save the nation's gold mining firms.

It had previously increased the gold price by a huge 757 per cent so as to cover rising production costs and curb the smuggling of the metal out of the country, where it could command a higher price.

Now the gold support price has been increased from Z$1 million per gram to Z$3 million per gram, which is around $472, Mineweb reports.

The central bank's governor, Dr Gideon Gono, said the increase was designed to rescue mining companies that are on the verge of collapse.

Commentators urged the bank to make quick payments for gold deliveries in order to boost confidence in the sector.

Power supply problems and late payments for gold deliveries have been adding to Zimbabwean gold miners' woes.


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