Fall in Gold price to affect Ghana’s export earnings

Expected revenue from Ghana’s exports is likely to reduce further as Gold prices on the international market continue to tumble.

The price of the commodity has now fallen to its lowest level in almost three years. It fell to 1,191 dollars an ounce in Asia trade, after breaching the 1,200 dollar mark in New York yesterday, 27th June 2013 for the first time since August 2010.

Gold price averaged around 1800 dollars in 2012, contributing largely to a growth in export earnings of nearly 5.3 million dollars, according to the 2013 budget statement. This was expected to improve with an average about US$2000 this year.

But that has not happened because currently Gold prices are averaging around 1,400 dollars an ounce. Analysts said investors had been anticipating further price falls.

As a result, there was a sell-off, resulting in a big drop in prices in recent days.

Gold prices have had a remarkable run over the past few years, driven mainly by two key factors. This includes the uncertainty surrounding the global economic situation after the global financial crisis and the sovereign debt problems in the Eurozone.