The price of gold has been rising steadily since 2023, surpassing $2,500 per ounce in August 2024. This trend is beneficial for gold producers like South Africa, which has faced challenges in its mining sector in recent years.

South Africa sold 114.4 billion rands (about $6.4 billion) of gold in 2023, up 18.8% YoY. The growth was driven by an average 8% rise in gold prices, according to a report from the Chamber of Mines published in August.

Though gold sales grew, exports fell by 1.9%, and local sales dropped by 17.1%. The Minerals Council attributes these declines to power supply issues that limited smelter operations. The country produced 96.6 tonnes of gold in 2023, down 0.2% YoY. Illegal mining and crime remain ongoing problems in the sector.

Looking ahead to 2024, the situation in South Africa's mining sector is gradually improving, particularly regarding electricity supply. In early July, the country experienced 100 days without load shedding, and this trend is expected to continue, according to the national supplier, Eskom. A more stable power supply could enhance gold production by allowing access to underground deposits.

The South African gold industry has also benefited from high international gold prices. In August 2024, gold prices rose over 20% since January, reaching the historic mark of $2,500 per ounce. Some analysts predict that prices could climb to $2,700 per ounce by mid-2025.