Zimbabwe recorded a sharp decline in its trade deficit in July, thanks to rising gold prices on international markets. The National Statistics Agency (ZimStat) reported that the deficit dropped 94.5%, from $158.6 million in June to just $8.7 million in July.
This strong performance was driven by an increase in exports, which reached $877.5 million in July—up 21.3% compared to the previous month, according to the central bank. Gold was the main contributor to this growth, with sales totaling $310 million, accounting for 35.4% of total exports.
Gold prices hit record levels on Tuesday, September 2, reaching $3,508.5 per ounce, with December futures contracts climbing to $3,578.2 per ounce. The growing demand for safe-haven assets like gold is being fueled by global economic uncertainty.
Speculation about potential interest rate cuts in the United States, combined with trade instability, has supported gold’s appreciation. The weakening of the US dollar has also contributed to the rise in commodity prices. Silver and platinum followed the same trend, also benefiting Zimbabwe, which is one of the world’s top platinum producers.
In the first seven months of 2025, Zimbabwe exported more than $1.385 billion in gold, a 60.5% increase compared to the $863.1 million recorded in the same period in 2024. This figure already represents 91% of total gold exports for the whole of 2024. Forecasts for gold prices remain optimistic. Analysts, including those at JPMorgan, estimate the precious metal could average $3,675 per ounce by the end of 2025 and potentially reach $4,000 by mid-2026. This trend is being driven by strong demand from investors and central banks.
Ongoing geopolitical tensions and persistent high inflation have led investors to view gold as a safe store of value. These factors are sustaining the upward trajectory in prices, offering Zimbabwe a strategic opportunity to strengthen its trade balance through precious metal exports.
Source: The Herald
