Nigerian Gold Prices Drop to N180,000 Amid Strong Naira

Gold prices in Nigeria have fallen to about N180,000 per gram, including retail markup fees, influenced by a stronger naira and a hawkish US Federal Reserve. The price per gram ranged between N174,900 and N176,500, while the price per ounce was between N5,449,000 and N5,516,000, with the global spot price around $4,120 to $4,165.

The USD/NGN exchange rate was approximately N1,320/$ to N1,331/$. Gold vendors in major Nigerian markets, including Lagos, Kano, and Abuja, typically add a local premium of 5% to 10% on top of the spot rate.

The hawkish stance of the US Fed, characterized by prolonged higher interest rates, strengthens the US dollar and negatively affects dollar-denominated gold prices. Local investors often turn to physical gold to protect their capital from the naira's eroding purchasing power.

Recent US macroeconomic data indicated slowing inflation, but an 85% probability of a rate hike in December remains, with the Federal Open Market Committee's minutes being closely monitored for further policy insights.