Instability of gold prices affecting mining sector – Chamber of Mines

The Ghana Chamber of Mines has stated that it is difficult to put a definite price on the gold because of the unstable prices of the commodity on the global market.

The president of the Chamber Kwame Addo-Kufuor told Accra-based Citi FM that this affects the returns of industry players.

“It is very difficult to predict because the gold prices went up by 100 dollars after the election of US President Donald Trump. But later, the prices of the commodity dropped by the same margin.”

“The price of gold has also declined to below 1,200 dollars an ounce and the important thing is to continue to contain costs and optimise operations,” he added.

After the election of Donald Trump as president for the USA, the price of gold increased significantly on the global market.

READ ALSO: Gold prices surge as Trump wins

Investors avoided risky assets and pulled the majority of their resources into gold.

However, prices dropped confirming the Chamber’s assertions of the unpredictable nature of the commodity’s prices.

Meanwhile, the sector has exceeded its 3.3 billion dollars target for 2016. This has led to the Bank of Ghana projecting total revenue of 4.5billion dollars by the end of the year from the mining sector.