Prof Asuming urges building of gold reserves while prices are high

Economists are calling on Ghana’s economic managers to take full advantage of the ongoing gold price boom to strengthen the country’s external buffers, despite recent improvements in the nation’s foreign reserves position.

Latest data show that Ghana’s gross international reserves have climbed to USD12 billion, up from USD10.7 billion in August 2025, providing around 6.5 months of import cover.

While the rise signals progress in rebuilding external strength, analysts warn that sustained accumulation is crucial to cushion the economy against future global shocks.

In a media interview, Economist Professor Patrick Asuming cautioned that the rally in gold prices may not last indefinitely and advised that Ghana make the most of the favourable market conditions.

“I don’t think what we’ve seen over the last week is enough trend for us to say that the gold has peaked and that the price is going to come down,” he said.

Prof Asuming emphasised that Ghana must seize the opportunity to build a stronger foreign exchange buffer that can stabilise the cedi in times of uncertainty.

“We know that gold is not going to stay at this record high for the foreseeable future. At some point, the rally will stop. And I think that’s why it’s important that we take advantage by building reserves upon reserves upon reserves, so that when the hard times come, you have enough reserve to support the currency and keep it stable,” he stressed.

Professor Asuming further noted that although the country’s current reserve levels are impressive, there remains room for improvement.

“Yes, our reserves are at a historic high, but it doesn’t stop us from keeping more of the reserves,” he stated.

The global gold market has seen increased volatility in recent days after months of steady gains. On 21 October, gold prices recorded their sharpest single-day fall in more than a decade, plunging six per cent before making a mild recovery later in the week.

As of 28 October, gold traded at USD3,931.80 per ounce, down from USD4,356.21 on 20 October, according to data from American Hartford Gold.

While still higher than levels seen in previous years, the decline represents a notable correction after a prolonged rally through most of 2025.