Gold prices in Uzbekistan rised to new heights on, March 6, marking the third consecutive day of record-breaking figures, as disclosed by the Central Bank of Uzbekistan. The value of one gram of gold increased to UZS 885,280 ($70.64), reflecting a notable 1.8% increase within the day alone. A 5-gram gold ingot now commands a price of UZS 4.426 mn ($353) compared to the March 4, where 5-gram gold ingot was $346.
Fluctuations and Milestones
Throughout 2023, the price of gold in Uzbekistan experienced remarkable fluctuations. March witnessed the crossing of milestones, with the cost of the smallest gold bar surpassing UZS 3.8 mn ($303) for the first time, followed by a subsequent increase to UZS 3.9 mn ($311) in early May. Despite intermittent declines during the summer, with prices dropping below UZS 3.7 mn ($295) per five grams, a robust rally occurred on August 14, marking a 3% increase and signaling sustained gradual growth thereafter.
Factors Driving the Surge
This persistent upward trend in gold prices follows an increase in precious metal costs on global exchanges, reaching multi-year highs at $2,125 per troy ounce ($68.3 per gram). Experts attribute this surge to escalating demand for gold, driven by expectations of impending reductions in key interest rates in the United States and other developed economies. Additionally, buyers from China seek gold as a safe-haven asset, while geopolitical tensions in the Middle East further contribute to investor enthusiasm worldwide.
Since 2018, the Central Bank of Uzbekistan has introduced gold coins to the public, followed by gold bars two years later. This initiative aims to decrease Uzbekistan's dependence on foreign currency and diversify the economy. Individual buyers can export these assets, subject to specific conditions, facilitating transactions through commercial banks.
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