Gold Prices Hit Record High Amid Global Uncertainty

The price of gold has soared to unprecedented levels, reaching Sh7.5 million per troy ounce on February 15, 2025.

This marks the highest price ever recorded, according to the Bank of Tanzania’s exchange rates. The surge represents a sharp increase of Sh1.3 million from the Sh6.2 million average recorded at the beginning of January.

The sharp rise is driven by growing investor demand as economic uncertainty continues to grip global markets. Inflationary pressures, currency fluctuations, and concerns over financial stability have pushed more investors toward gold, long regarded as a safe-haven asset.

Despite this historic peak, the gold market remains volatile. After reaching an average of Sh7.46 million per troy ounce on October 31, 2024, prices saw a minor drop, settling at Sh7.42 million as of February 18, 2025. However, when compared to the same period last year—when gold was priced at Sh5.02 million—the latest figures reflect a substantial 49 percent increase.

Speaking on the rising trend, Bank of Tanzania Governor Emmanuel Tutuba explained that the increasing value of gold is a direct response to broader economic factors. “Global uncertainties have resulted in increased demand for gold as a stable asset. Inflationary pressures and currency fluctuations are key drivers pushing people toward gold as a secure investment,” he said.

The trend is not just limited to Tanzania. According to global market data from London, the international price of gold climbed to $2,908 per ounce on February 15, 2025, up from $2,812 at the end of January.

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This rapid increase within a short period highlights the global rush for gold amid financial instability.

Governor Tutuba noted that shifts in supply and demand dynamics, including gold availability from mining operations, are also influencing the price surge. “Global challenges such as political instability, economic crises, and ongoing conflicts, including wars, have created uncertainty in financial markets, prompting investors to seek refuge in gold,” he explained.

Financial analyst Oscar Mkude echoed this sentiment, pointing to key global events that may be shaping market trends. He suggested that declining stock markets, coupled with major policy decisions in the United States, have played a role in shifting investor interest toward gold. “The downturn in the stock market, combined with drastic economic measures, has led many investors to turn to gold for stability,” Mkude said.