Home Business Ghana’s NewGold ETF Plummets 15% Amid Global Gold Market Downturn

Ghana’s NewGold ETF Plummets 15% Amid Global Gold Market Downturn

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Ghana’s premier gold-backed investment vehicle, the NewGold Exchange Traded Fund, has suffered a significant 15.4% decline in value over the past month, mirroring weakening global gold prices.

The ETF closed at GH¢385.12 on May 14, down sharply from GH¢483.59 just four weeks earlier, marking its lowest valuation in over a year.

The fund’s steepest single-day drop occurred on May 14, when it lost GH¢41.89 in a single trading session. This downward trajectory contrasts with broader gains on the Ghana Stock Exchange, where the Composite Index rose 2.3% to reach 6,607.59 points during the same period.

Market analysts attribute the ETF’s slump to shifting global investment patterns, including stronger U.S. economic indicators, stabilizing inflation expectations, and renewed investor confidence in equities and bonds. These factors have reduced the appeal of traditional safe-haven assets like gold. Trading volumes reflect this changing sentiment, with only 9,057 units changing hands on May 14 compared to over 33,000 in late April.

The NewGold ETF, launched by Absa Capital, provides investors exposure to international gold prices without physical bullion ownership. While current market conditions have dampened short-term demand, some analysts suggest the price correction may present buying opportunities for long-term investors, particularly given gold’s historical role as a hedge against economic uncertainty.

The fund’s performance continues to demonstrate the Ghanaian market’s sensitivity to global commodity trends, even as domestic equities show resilience. Market observers will be watching to see whether this represents a temporary correction or a more sustained shift in investor preferences away from precious metal investments.

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