Nigerian Gold Prices Drop to N172K/g Amid U.S. Treasury Shift

Nigerian gold prices decreased to N172,000 per gram as global investors sought U.S. Treasuries, leading to a drop in gold prices below $4,000 an ounce, the lowest in over three months.

Gold fell as much as 1% to below $3,990 an ounce after a nearly 3% decline on Thursday. The shift in focus to U.S.

Treasury yields increased the opportunity cost of holding gold, as the strong performance of U.S. government securities attracted institutional funds away from gold. This situation was exacerbated by a broader market rout following declines in U.S. equities.

Additionally, rising crude prices due to regional conflicts raised inflation concerns, further impacting gold's appeal as a non-yielding asset. Nigeria's gold is primarily sourced from artisanal miners in states such as Zamfara, Kebbi, Niger, Osun, and Kogi.

The Central Bank of Nigeria is actively stockpiling refined gold to diversify foreign reserves and stabilize the national currency.