Gold prices have experienced a notable upswing recently due to increasing concerns over geopolitical tensions in the Middle East and the mounting debt situation in the United States. Investors have turned to gold as a safe-haven asset, pushing its futures prices above the $2,000 per troy ounce threshold, a level not seen in over two months. This surge is approaching the record high of $2,089 set in August 2020.
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This increase in gold prices comes on the heels of a recent dip, as the metal's value fell to nearly $1,820 per troy ounce earlier this month. However, the renewed interest in gold can be attributed to global events, particularly in the Middle East, which have reignited investors' attraction to the precious metal as a safe-haven investment.
One primary factor contributing to the rising gold prices is the resurgence of geopolitical tensions in the Middle East. The region has long been a focal point for global concerns, and recent escalations have heightened investor apprehensions. Such uncertainties often prompt investors to turn to gold as a traditional store of value, seeking to protect their investments from instability.
Another significant driver of this surge is the fiscal situation in the United States. The rapid issuance of Treasury bonds has disrupted the balance of supply and demand in the financial markets. With the U.S. government increasing its borrowing and debt levels, the oversaturation of bonds has led to concerns about inflation and the value of the U.S. dollar.
The Central Bank of Uzbekistan has mirrored these global shifts in the pricing of gold. On October 30, it set the price for a five-gram gold bar at an all-time high of UZS 4,057,000 ($331.52). This represents an increase of 8.7% compared to the price at the beginning of October. Since the start of the year, the cost of Central Bank bullion bars, available for purchase by the public, has risen by 17.3%.
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