Refinery services provider Heraeus says gold prices continue to show a consolidation trend following record prices late in December, which means prices are moving within a specific, range-bound pattern and not trending sharply up or down.

Gold prices closed the week ended February 20 at $5 067/oz.

Some near-term headwinds for gold include a strengthening dollar; however, interest rate cuts later in the year, which are anticipated by market stakeholders, may be supportive of higher prices.

The market is not predicting interest rate cuts until June, but three or more rate cuts are likely toward the end of the year.

Meanwhile, Heraeus reports that Ghana’s increase in gold production to 187 t last year has cemented the country’s position as the largest gold producer in Africa. Ghana may soon overtake the US and be the fifth-largest producing country of gold globally.

The surge in production was a result of much higher artisanal and small-scale output, with large-scale mine output having held steady.

Heraeus says the ramp-up at new mines such as that of Newmont Gold Corporation’s Ahafo North is offsetting declining grades at other mines in the country.

The rising price of gold is incentivising greater production but also leading to governments seeking a larger share of the profits.

The Ghanaian government is considering legislation to lift the gold royalty payment from a flat levy to a range of 5% to 12% depending on the price, which has disappointed the large mining companies.

To offset the impact, Ghana’s Finance Minister has offered to cut another mining levy by two percentage points. In the near term, the higher income will be good for government finances.

The downside, however, is that higher tax levels often disincentivises investment and longer-term production, which will drag government income down.

Heraeus further finds that silver bar and coin sales are doing well amid a higher price environment, with silver having closed the week of February 20 at a price of $82.45/oz.

The Perth Mint’s sales of silver bars and coins, for example, were 188% higher month-on-month in January, reaching 1.7-million ounces of silver. This while gold sales fell by 19% month-on-month to 29 000 oz for the entity.

This is consistent with price-sensitive buyers opting to buy silver as it outperformed gold during the price rally. This was the largest monthly sales figure for silver since May 2023.

Perth Mint’s silver sales had been declining since 2022 when 23.2-million ounces were sold, with 2025 silver sales having amounted to 7.3-million ounces.

OTHER PRECIOUS METALS

Moreover, platinum prices are also consolidating at about $2 100/oz.

What bodes well as a source of demand for platinum is the fact that automaker Stellantis is refocusing production to diesel vehicles amid weaker-than-expected electric vehicle uptake in the EU and as regulators have softened the emissions rules that previously threatened to totally phase out combustion engines by 2035.

Diesel is one area in which Chinese manufacturers are unlikely to compete in Europe owing to their focus on battery-electric vehicles (BEVs) and petrol vehicles.

The diesel-only share of EU new car registrations fell to 8.9% in 2025, while BEVs vehicles reached a 17.4% share.

Stellantis took a €22-billion write-down related to its EV business. The company eliminated fully electric models including the RAM 1500 pick-up truck in the US, while delaying other EV projects in Europe and cancelling joint ventures with battery companies such as Canada’s LG Energy Solution.

This move does not alter Europe’s long-term electrification path, but it could slow diesel displacement at the margin. Automotive platinum demand in Europe is still dominated by passenger cars, with more than a million diesel cars having been produced in 2025, but demand has shrunk by more than half in the last ten years.

Heraeus reports that palladium has been trading in a narrowing range around $1 700/oz since early February, while rhodium, ruthenium and iridium have remained constant at $11 050/oz, $1 470/oz and $7 200/oz, respectively.