Economy
How to Trade Gold in Nigeria
Gold has traditionally been seen as a way to store your money. It’s not affected directly by either fiscal policy or monetary policy of governments and central banks like currencies.
It will always be worth something – unlike a currency that can end up being almost worthless as a result of rapid inflation, for instance. That’s why whether it’s in the uptrend or in the downtrend, the gold market offers high liquidity and excellent profit-making opportunities due to its unique position within the world’s economic and political systems.
Some traders often fail to take full advantage of the changes in gold prices because they haven’t learned its unique characteristics or the hidden pitfalls that can steal their profits. Let’s take a look at the advantages of trading gold, factors that can influence its prices and how to trade gold profitably.
What Drives Gold Prices
Like we’ve mentioned before, gold prices can be driven by a limited number of catalysts. Market sentiment, volume and trend intensity are generally driven by:
- Inflation and deflation
- Greed and fear
- Supply and demand
Market participants can face increased risk when they trade gold in reaction to one of these factors, when in fact, it’s another one driving price action. Imagine there’s a major selloff in the financial market, and gold starts rallying.
Traders assume that fear is moving the precious metal and expect that the emotional crowd will carry the price higher.
However, inflation may have actually triggered the stock’s decline, attracting a more technical crowd to the market that will sell aggressively.
Combinations of these forces are always in play in world markets, establishing long-term themes that track equally long uptrends and downtrends.
Gold attracts numerous crowds with diverse and often opposing interests. The so-called gold bugs (individuals who buy gold as protection against an anticipated collapse in the value of currency, stocks, etc.) stand at the top of the crowd, allocating an outsized portion of family assets to gold equities. They are long-term market players who are rarely discouraged by recurring downtrends, so they eventually shake out less ideological traders.
Gold bugs add massive liquidity, providing a continuous supply of buying interest at lower prices. They also serve the contrary purpose of providing efficient entry for short-sellers, especially in emotional markets when one of the three above-mentioned factors swings the market in favour of strong buying pressure.
To trade gold profitably, you need to know the crowd sentiment. Cayman Sentiment Index is a unique indicator offered by the AMarkets online broker absolutely for free to all of its clients that will allow you to spot potential market extremes, which can be considered as a strong signal for a correction or a trend reversal.
Examine long-term charts
Make sure to examine the gold chart carefully. Start with a long-term history that goes back at least 100 years. In addition to spotting trends that lasted for decades, you’ll see that the yellow metal has also trended lower for long periods of time, robbing profits from gold bugs. From a strategic standpoint, such an analysis is useful because it helps you identify price levels that need to be watched if and when gold decides to test them again.
Summing up
To trade the gold market profitably, make sure to study how the three polarities we mentioned in this article impact gold buying and selling decisions. Don’t forget to devote some time and analyze the long and short-term gold charts to see which key price levels may come into play.
Keep in mind that traders widely use gold as a “safe haven” asset. When market participants are worried about risk trends, they tend to flock to gold.
On the other hand, as risk appetite grows, expect a selloff in haven assets. As you can see, gold is an important hedge tool against inflation and a valuable asset that can bring you good profits.
If you consider trading gold, make sure you choose a reputable global broker with favourable trading conditions. AMarkets offers some of the lowest spreads in the industry to trade gold.
Just recently, it slashed its spreads on gold by 30% on ECN accounts, allowing its clients to make the most out of their gold trading.
By Dipo Olowookere
The week-on-week trading volume on the Nigerian Exchange (NGX) Limited contracted by 38 per cent amid profit-taking by investors as a result of cautious trading.
Data from Customs Street showed that in the five-day trading week, market participants transacted 3.075 billion shares worth N254.614 billion in 287,157 deals, in contrast to the 4.964 billion shares valued at N207.521 billion traded in 235,966 deals in the preceding week.
Analysis showed that financial equities led the activity chart, with 2.074 billion units sold for N64.490 billion in 121,981 deals, contributing 67.44 per cent and 25.33 per cent to the total trading volume and value, respectively.
Services stocks recorded a turnover of 175.743 million units worth N2.759 billion in 19,590 deals, while consumer goods shares exchanged 133.375 million units valued at N12.680 billion in 30,730 deals.
Access Holdings, Sterling Holdings, and Jaiz Bank accounted for 819.234 million shares worth N12.247 billion in 21,809 deals, contributing 26.64 per cent and 4.81 per cent to the total trading volume and value, respectively.
In the week, 11 equities gained weight versus 40 equities a week earlier, 78 shares lost weight versus 53 shares in the previous week, and 57 stocks closed flat versus 53 stocks of the preceding week.
Cornerstone Insurance chalked up 11.01 per cent to sell for N6.05, Academy Press rose by 8.72 per cent to N8.10, Conoil improved by 8.25 per cent to N210.00, Neimeth expanded by 4.68 per cent to N8.95, and Ikeja Hotel grew by 3.36 per cent to N44.60.
On the flip side, International Energy Insurance shed 28.83 per cent to trade at N5.06, First Holdco lost 20.29 per cent to finish at N55.00, John Holt slipped by 17.65 per cent to N11.20, NAHCO depreciated by 17.27 per cent to N148.50, and Zichis dropped 16.13 per cent to settle at N26.00.
Business Post reports that the All-Share Index (ASI) and the market capitalisation depreciated by 3.59 per cent to close the week at 235,941.27 points and N151.327 trillion, respectively. Also, all other indices finished lower except the sovereign bond index, which remained unchanged.
By Adedapo Adesanya
Dimension Data SPV Funding Plc has opened subscriptions for its Series 1 Corporate Bond issuance of up to N5 billion under a N20 billion bond programme, with proceeds earmarked for expanding Nigeria’s digital infrastructure.
The offer, led by Pathway Advisors Limited as the Lead Issuing House and Bookrunner, is being executed through a book-building process and will close on June 29, 2026.
According to transaction details, the three-year bond is being offered at a book-build price range of 18.50 per cent to 20.00 per cent per annum, with coupon payments to be made semi-annually. The final coupon rate will be determined at the conclusion of the book-building exercise. The minimum subscription has been set at N10 million.
Dimension Data SPV Funding Plc said the funds raised from the issuance would be deployed towards strategic investments in fibre network expansion, capacity enhancement and service quality improvements.
The company noted that the investments would strengthen the infrastructure supporting Nigeria’s rapidly expanding fintech sector, enterprise connectivity needs and the broader digital economy.
“The proceeds from the bond issuance are intended to support strategic investments in fibre network expansion, capacity enhancement and quality service delivery. This will bolster the critical infrastructure supporting Nigeria’s broader fintech, enterprise connectivity and digital ecosystems,” the company stated.
The bond has been assigned ratings of BBB+ by Agusto & Co and A- by DataPro Limited, while the sponsor, Dimension Data Limited, holds BBB+ ratings from both Agusto & Co and DataPro.
Dimension Data Limited, incorporated in 2003, is a provider of end-to-end Information and Communications Technology (ICT) solutions in Nigeria.
The company provides services including IP telephony, SD-WAN, dedicated internet services and Multiprotocol Label Switching (MPLS) solutions, while also offering managed services, hosting, storage and virtual machine solutions. Its operations span connectivity services, systems integration, data centre management and cloud solutions.
Dimension Data operates a purpose-built data centre with a 47-rack capacity, serving clients across the banking, telecommunications, retail and enterprise sectors.
According to the company, its business model combines recurring revenues from managed services with project-based income from systems integration activities, creating a diversified revenue base and stable cash flows.
The firm also said it has maintained long-standing relationships with a broad portfolio of local and multinational clients, with more than 70 per cent of its major customers retaining business relationships with the company for over a decade.
Commenting on the transaction, Pathway Advisors Limited said the offer presents investors with an opportunity to gain exposure to a critical infrastructure segment positioned for sustained long-term growth as Nigeria accelerates its digital transformation agenda.
Pathway Advisors, a Securities and Exchange Commission-regulated issuing house and financial advisory firm, said it remains committed to facilitating access to capital and supporting sustainable economic growth across key sectors of the Nigerian economy.
By Adedapo Adesanya
The federal government says Nigeria’s solid minerals sector has attracted about $3 billion in investments over the past three years, driven by interests in lithium, gold and other strategic minerals.
The disclosure was made recently during a press briefing ahead of the 5th African Natural Resources and Energy Investment Summit (AFNIS), scheduled to hold from June 23 to 25, 2026, at the State House Conference Centre, Abuja, noting that the investments are being supported by policy changes introduced under President Bola Tinubu’s administration, aimed at repositioning the mining sector as a major contributor to economic diversification.
The Minister of Solid Minerals Development, Mr Dele Alake, who was represented at the briefing by the chief executive of the Nigeria Solid Minerals Company, Mr Martins Imonitie, said the inflow of $3 billion within three years was significant, given the capital-intensive and long development cycles typical of mining projects globally.
According to him, mineral development requires extensive geological studies, financing arrangements, and offtake agreements, meaning investment decisions are rarely immediate and often take years to materialise.
“For Nigeria to attract about $3bn in investments within this period is unprecedented and demonstrates growing confidence in the direction of reforms in the sector,” he said.
He noted that mining projects can take between 15 and 20 years to reach full commercial maturity, stressing that the sector demands long-term capital commitment rather than short-term returns.
“These investments cut across lithium, gold and several other minerals. More importantly, they signal what lies ahead for the sector in terms of sustained growth and global investor interest,” he added.
Mr Alake said the forthcoming AFNIS 2026 would focus on repositioning Africa from a raw materials exporter to a value-added industrial hub capable of driving job creation, technology transfer and inclusive growth.
He noted that Africa’s natural resource base must be leveraged not only for exports but for domestic industrialisation and long-term economic transformation.
“The significance of AFNIS 2026 goes beyond its fifth edition. It comes at a defining moment for Africa, as global demand for critical minerals continues to rise amid the energy transition,” he said.
He added that the summit’s theme, “One Africa, One Resource Vision,” reflects the need for stronger regional cooperation in developing mineral resources, energy infrastructure and integrated value chains.
According to him, isolated national approaches are no longer sufficient, given the scale of global demand and the need for competitive positioning in supply chains for critical minerals such as lithium, cobalt, graphite and rare earth elements.
Mr Alake also disclosed that the 2026 edition would place greater emphasis on implementation, with structured investment sessions, sovereign meetings, project financing discussions and deal-oriented engagements.
“The objective is clear: participants should leave Abuja with concrete partnerships, investment commitments and actionable projects that translate into jobs and economic growth,” he said.
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