In addition to geopolitical factors, currency fluctuations play a crucial role in shaping gold prices. The strength of major currencies, particularly the U.S. dollar, heavily influences both gold supply and pricing. Economic policies, such as trade tariffs or export restrictions, further disrupt the gold supply chain. For example, during the U.S.-China trade war in 2018, ongoing tensions boosted the U.S. dollar, making gold less appealing to investors. These interconnected factors underscore the importance of understanding global dynamics when investing in gold, as they collectively shape the market’s behaviour and investor opportunities (Ding et al., 2022).

Furthermore, political instability and civil unrest in some gold-producing regions, such as South Africa, have contributed to disruptions in the gold supply. In countries with weak government structures and public security, gold mining operations are often targeted by armed groups, leading to a decline in production and an increase in illegal mining activities. South Africa, once one of the world’s largest gold producers, is a prominent example. Illegal mining has become a significant issue, contributing to a decrease in official gold production. As the country continues to grapple with the effects of civil unrest and illegal mining, it becomes clear that the economic and human costs of instability are deeply intertwined with the gold mining sector.

In conclusion, the unstable international political and economic environment in recent years has posed significant challenges to the global gold supply. As a result, understanding the current state of the worldwide gold supply is crucial for investors, manufacturers, and consumers alike, as it directly impacts the price of gold as a commodity. Staying informed about the global gold market is essential for navigating its complexities and capitalizing on opportunities in an ever-changing economic landscape.