The value of gold grew by 65% in 2025, and breached $5,580 (€4,705) per ounce (roughly 31 grams), last week before declining.
"What we've been seeing for months now simply shows that uncertainty in global markets has increased," Frankfurt-based online broker Salah-Eddine Bouhmidi told DW. "As a result, investors are turning to gold as a safe haven."
Thu Lan Nguyen, head of FX & Commodity Research at Germany's Commerzbank, told DW that the "erratic policy approach" from the United States was a driver of the high gold price.
Gold hits record high
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"There are also significant fiscal risks due to the expansionary fiscal policy in the US, quite apart from the foreign-policy issues we're dealing with at the moment," she added.
Africa's main gold producers are seeking to profit from the rise in gold prices. Burkina Faso, for example, reported a record 94-ton gold outputin 2025. That represents an increase of more than 30 tonnes produced in 2024.
Striking gold: Africa's opportunity in the new gold rush
Marvellous Ngundu, a researcher at the South Africa-based Institute of Security Studies (ISS), told DW, Africa stands to benefit from "export earnings, fiscal revenues, and also an increase in the foreign currency inflows."
This is because it produces over a quarter of the global gold output, more than any other continent. There is a caveat, though: "If, and only if, the leakages or the illicit financial flows associated with gold are controlled," the analyst says.
Ghana, Africa's top gold producer is changing its mining lawsto capture a bigger share of gold revenues. Analysts say that, currently, foreign investment is needed because there are not enough funds to acquire the technology, the skills, and the machinery to produce gold at scale.
This concerns foreign mining companies operating in Ghana, which include Newmont, AngloGold Ashanti and Gold Fields. According to Ghanaian officials, favorable tax and royalty terms leave the state with a limited stake.
As reported by Reuters, Accra's terms for foreign mining companies are known as stability agreements. These determine royalty rates for 5 to 15 years in exchange for investments of about $300 million to $500 million in mine constructions and expansions. Among other conditions, miners must also extend mine life by at least three years and lift output by more than 10% to qualify for renewal.
Behind Ghana's golden windfall: Toxic trails and human cost
Isaac Tandoh, acting CEO of the Minerals Commission, told Reuters that "renewal is conditional, not automatic."
"We've seen companies use revenue from Ghana to buy mines elsewhere while refusing to pay even basic obligations like contributions to district assemblies. That cannot continue," he added.
Elsewhere, Mali, the Democratic Republic of Congo, and Tanzania have also also tightened mining laws to increase state control over critical minerals, including cobalt and coltan.
Aside from Western backers, China and Russia have invested in gold mining, including in the Sahel countries. Last year, Burkina Faso granted Russian mining giant Norgold a lease to develop the Bissa-Bouly mine, about 85 kilometers north of Ouagadougou.
For analyst Ngundu, the surge in gold price, while welcome for Africa's miners, presents a double-edged sword for governments.
"This gold windfall can fuel currency on overvaluation and crowd out other exports unless managed. You'll see that at the end of this quarter, Africa's exports will be high, especially for those who export gold," he told DW.
Africa's paradox: Rich in gold, but with empty vaults
Even though Africa produces more gold than any other continent, it holds just 2% of gold reserves, according to Ngundu: "Gold is a currency on its own. It determines the monetary autonomy of the country. Gold is being sold by these [producing] countries, but the problem is that it's being sold to other countries in raw form."
US has 8,133 tonnes
in gold reserves, followed by Germany, Italy and France. The highest-ranked African nation is Algeria, with 174 tonnes. South Africa, which has over a century of gold mining history, has just 125 tonnes. Not only is gold leaving the continent, but it is also doing so cheaply, Ngundu said.
"It's being sold to other countries in raw form. It then passes the value to other countries that buy it for refining purposes and keep it as reserves," he told DW.
Ngundu suggested building gold-refining plants on the continent and controlling "illicit leakages" would significantly help African governments benefit from their gold wealth.
Conflict gold: How mining fuels local tensions
Ghana, like other African nations, has hemorrhaged mining profits due to illegal or unregulated mining. The skyrocketing gold price, has also turbocharged demand in illicit mining,which in turn fuels instability in local communities, such as in the Sahel.
In South Africa, violent clashes have been reported among irregular mining operations. Known as zama zamas, miners operate, often in gang-controlled conditions that have brought them into violent conflict with each other, law enforcement, and local communities.
In conflict zones, such as Sudan, high gold prices have turned mines and mining areas into battlegrounds.
Recently, the AFP reported that 13 miners were killed in a southern Sudanese gold mine.
The state miner, Sudanese Mineral Resources Company (SMRC), said the collapse occurred in "five abandoned shafts" of the Umm Fakroun mine in South Kordofan state.
Sudan's gold resources, and foreign backers have funded both sides of the civil war between the Sudan Armed Forces (SAF) and the paramilitary Rapid Support Forces (RSF).
SMRC said that "some miners were working illegally."
Why isn't the DR Congo the world's richest country?
While the civil war has brought Sudan's economy to its knees, the SMRC announced a "five-year high" in production of 70 tonnes of gold in 2025. But analysts and officials say most of the gold is smuggled out of Sudan before reaching the United Arab Emirates, the world's second-largest gold exporter.
