The price of gold hit a record-breaking $2,100 per troy ounce during Monday's trading on December 4, surpassing the previous high set during the 2020 COVID-19 pandemic, Kommersant agency reported.
The surge in gold prices is attributed to armed conflicts in the Middle East and a slowdown in inflation, Kommersant reports. This uncertainty has rekindled interest in gold as a safe-haven asset globally.
Amid the rise, the French news agency Agence France-Presse speculates that the surge might lead the U.S. Federal Reserve to reconsider its stance on interest rates. Traders estimate a 60% probability of a key interest rate cut in March 2024.
The global gold market dynamics have significantly impacted Uzbekistan's economy. As gold prices soared, Uzbekistan's gold exports abroad more than doubled to an impressive $6.87bn. This economic boost highlights the global impact of gold price fluctuations on national economies.
The surge in gold prices is part of a larger trend. In late October, gold had already reached $2,000 per troy ounce, setting the stage for December's record-breaking surge. This economic trend aligns with global uncertainties and the increased demand for stable assets.
Earlier Daryo reported that a trade deficit in Uzbekistan surpassing $10bn was partially balanced by a substantial increase in gold exports, hitting a historic $6.87bn, constituting 33.6% of the nation's overall export revenue.
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