Follow Us on Google Discover
The price of gold per gram in Nigeria is approximately N220,000 for pure gold, inclusive of retail markup fees, as metal traders await US inflation data.
Gold dealers in major Nigerian markets such as Lagos, Kano, and Abuja typically incorporate a local markup of approximately 5% to 10% over the spot rate.
Globally, metal traders tend to avoid significant directional bets before the release of US Consumer Price Index (CPI) figures.
A higher CPI would likely exert downward pressure on gold by strengthening the US dollar and US yields, whereas a lower CPI could reinforce expectations of Federal Reserve interest rate reductions, potentially propelling the precious metal beyond current resistance levels.
Also Read
The conversion for one troy ounce equals approximately 31.1035 grams. The global spot price of gold, when converted to Nigerian Naira using the current official exchange rate of approximately N1,430/$ (black market rate) remains a key reference. Retail traders usually have a local markup at the pure spot rate of around 5%-10%.
The Central Bank of Nigeria’s ongoing policy of purchasing gold domestically via the National Gold Purchase Program establishes a robust floor value for local miners and bullion dealers. At present, Nigerian private individuals and institutions predominantly utilize physical gold and tokenized gold as instruments for wealth preservation and inflation hedging.
Gold above $4,400 per ounce in London
Currently, gold is valued at over $4,400 per ounce in London. Recent market activity indicates that gold is demonstrating resilience above the $4,400 threshold in London, marking the third consecutive bullish session for the metal.
Metal traders are positioning themselves ahead of the upcoming US CPI release. Expectations of lower inflation or interest rates tend to weaken the US dollar, leading to increased capital flow into non-yielding assets such as gold.
- Investors are likely to celebrate this trend, especially as bets on a Federal Reserve rate hike in September diminish. The CME FedWatch tool now indicates a 50/50 chance following the unexpectedly negative non-farm payrolls figure of 23,000 from Friday’s report. This outcome has impacted the US dollar negatively, resulting in increased demand for gold amidst geopolitical tensions such as the potential opening of the Strait of Hormuz and concerns over oil prices and inflation.
However, recent surges in oil prices overnight have revived inflation concerns, especially given the stalled US-Iran diplomatic negotiations concerning peace and the reopening of waterways.
- While China’s institutional investors and central banks have been steady accumulators, this has provided additional underlying physical demand support for the market. The Chinese PBoC, among other EM banks (emerging market banks), has been consistently increasing its physical gold reserves as a means of diversifying holdings beyond exposure to the greenback.
- Gold bars/coins (Physical) and gold-backed ETFs have seen consistent demand as a means of wealth preservation, supported by domestic volatility and volatility in China’s currency.
Higher energy prices have also kept inflation concerns supported globally, solidifying gold’s safe-haven role. Central bank rate cuts became more challenging amid high energy costs, as the risk of sticky price increases.
Meanwhile, President Trump reiterated similar demands via a Truth Social post on Monday, threatening military reparation claims from Iran due to damages from ongoing conflict, which has resulted in significant casualties and economic setbacks for Iran.
Furthermore, Iranian media outlets and a post on X, attributed to an advisor to the Parliament speaker Mohammad Bagher Ghalibaf, expressed Iran’s willingness to delay negotiations until after the expiration of US President Biden’s term on January 20, 2029. This has intensified risk-averse sentiments across Asia, leading to higher oil and Treasury yields.
Market participants remain uncertain whether gold can sustain its upward momentum, as the metal may experience a short-term correction due to profit-taking ahead of the upcoming CPI release.
