By Atoyebi Nike
Gold prices soared to fresh highs on Wednesday as Nigeria intensified its clampdown on illegal mining operations in the Federal Capital Territory.
Spot gold (XAU/USD) touched $3,535 per ounce in London, surpassing April’s record of $3,500, before stabilizing at $3,530. Futures for December delivery also jumped to $3,600, doubling since early 2023 and up more than 35% this year.
The surge coincides with Nigeria’s closure of an illegal mining site in Gwagwalada, following environmental and security concerns. The action, ordered by Minister of Solid Minerals Development Dr. Dele Alake, came after artisanal miners invaded the area when gold was accidentally discovered during residential construction.
His Special Assistant on Media, Segun Tomori, noted that a similar raid on August 16 shut another site in Gwagwalada, where 16 suspects were arrested. Many of the miners sell gold through networks that move the metal across Niger, Libya, Algeria, Chad, and Benin.
Globally, gold’s rally is driven by expectations that the U.S. Federal Reserve will cut interest rates on September 17, with markets pricing in a 90% chance of a 25-basis-point reduction. Investor demand for gold has also grown amid Donald Trump’s tariff policies, pressure on the dollar, rising bond yields, and geopolitical tensions, including Russia’s war in Ukraine and unrest in the Middle East.
European Central Bank President Christine Lagarde warned that Trump’s repeated attacks on Fed Chair Jerome Powell and threats to central bank independence pose a “very serious danger” to global economic stability.
With debt market volatility and renewed trade tensions, investors are increasingly turning to bullion as a hedge against uncertainty, cementing its position as the best-performing safe-haven asset of 2025.
