On August 14, the Central Bank of Uzbekistan announced significant updates to the prices of measured gold bars and commemorative coins, marking a 3.3% increase in the cost of one gram of gold over the weekend. This surge follows a pattern observed in March 2022, when the value of gold experienced substantial fluctuations due to external factors, such as the devaluation of the Russian ruble and the Turkish lira.
The cost of gold per gram rose to 766.96 thousand soums ($63.55), showcasing a notable increase of 3.3% compared to the previous weekend. This change led to a higher price for gold bars, including a 5-gram bar, which is now being sold for 3,835,000 soums (around $318), reflecting a 124,000 soums (ober $10) increment from the previous Friday (August 4). Similar price jumps were observed in March 2022, where the price of a 5-gram bar surged by almost 5%, equating to a 176,000 soums (around $15) increase. These fluctuations coincide with the depreciation of the Uzbek sum, exacerbated by the devaluation of other currencies.
Gold's price performance in 2023
Gold's price in 2023 has experienced multiple fluctuations, with record highs being set in March. Notably, the price of the smallest gold ingot surpassed the 3.8 mn soums (around $315) threshold for the first time in March, and by early May, it reached 3.9 mn soums (over $323). However, the precious metal's value experienced a decline since late May.
The Central Bank of Uzbekistan introduced the sale of commemorative gold coins to the public in 2018, followed by the availability of gold bars in 2020. These initiatives were driven by several factors. Firstly, there was a desire to reduce the country's dependence on foreign currency by tapping into its gold reserves. Additionally, experts argue that enabling access to gold bolsters investment opportunities and enhances the security of savings. By allowing individual buyers to purchase gold bars and coins subject to certain conditions, the Central Bank aimed to diversify investment options within the Uzbek economy.