Economic context favorable to price increases

Gold prices have risen by 20 % this year, with historic records broken each month. The yellow metal is now being sold for over eleven million ariary (2,600 USD) per ounce (31.10 grams) as of Friday.

The prices of the yellow metal are breaking records. The price of gold on the stock markets reached a new record, surpassing the symbolic threshold of 2,500 USD before stabilizing at the end of the week. Since the end of last year, the demand for gold has continued to grow, with prices increasing by more than 20 % since January—a statistic that might surprise some.

According to financial experts and economic magazines, various circumstances have influenced gold prices. These include fears of an economic crisis in the United States and potential military upheaval in the Middle East. Due to global tensions, many savers invest their savings in this so-called « safe haven » asset, ensuring protection against any banking recession. Negative signals for the U.S. economy and fears of a recession have encouraged this trend.

The high prices of gold could also encourage illegal mining and export of the yellow metal in Madagascar. Despite this, the rising prices benefit all sectors of the economy.