Ghana Export Ban Threatens Gold Supply as Central Banks Keep Buying

Gold's price has been experiencing losses over the past week, erasing a significant portion of its August rally. Despite this, there are underlying factors that suggest the metal may be due for a rebound.

The recent decline can be attributed to rising interest rates and fresh US-Iran tensions, which have led investors to take a cautious approach. However, a structural development in West Africa is quietly reshaping the physical market's contours.

Ghana has banned exports of unrefined artisanal gold doré effective September 1, forcing informal production through more formalized channels. This regulatory move carries potential implications for trade volumes and provenance documentation in the physical bullion market.

The demand picture tells a different story, with central banks worldwide purchasing a net 289 tonnes of gold in the second quarter, the strongest Q2 on record. A survey found that 45% of institutions plan to expand their holdings within the next twelve months.