Gold prices soar in Uzbekistan, hitting a record UZS 10 million for a 5-gram bar

The price of one gram of gold has risen to UZS 2,007,280, reflecting a 2.49% increase over the weekend. A 5-gram gold bar is now priced at UZS 10.036 million, an increase of UZS 243,000 compared to the previous Friday.

Earlier this month, on 12 January, the cost of a 5-gram gold bar had already broken the psychological barrier of UZS 9 million for the first time. Since the beginning of January, the price of the precious metal has increased by 15.9% in Uzbekistan.

The global price of gold has exceeded $5,000 per troy ounce ($163 per gram), fueled by ongoing geopolitical tensions. Additionally, the price of silver has also surged, reaching over $100 per troy ounce, marking an increase of more than 4% in just one day.

According to ABC, the rising demand for precious metals is driven by several factors, including ongoing geopolitical uncertainties, the reduction of interest rates in the United States, and increasing purchases by central banks. For instance, the People's Bank of China has been steadily increasing its gold reserves over the past 14 months.

“We expect further upside. Our current forecast suggests that prices will peak at around $5,500 later this year,” said Phillip Newman, director at Metals Focus. “Periodic pullbacks are likely as investors take profits, but we expect each correction to be short-lived and met with strong buying interest.”

Robin Brooks, a senior researcher at the Brookings Institution in Washington, called the current precious metals rally “exciting and alarming.” He believes it signals the onset of a global debt crisis and predicts that a weakening dollar could accelerate gold price increases.

Since 2018, the Central Bank of Uzbekistan has been selling gold coins to the public, and two years later, it introduced gold bars. Physical persons are allowed to export them from Uzbekistan under certain conditions.

These initiatives aim to reduce Uzbekistan’s reliance on foreign currency and to provide more investment opportunities for the public, safeguarding their savings. Experts also believe that expanding access to gold will help enhance financial security in the country.

Gold coins and bars can be bought and sold through commercial banks, with prices updated daily and available on the Central Bank’s website and Telegram bot. From January to mid-September, the Central Bank sold 380 kg of gold to 17,300 customers, representing a 61% increase compared to all of 2024.

On 5 January, the Central Bank began publishing the buyback prices for gold bars on its website. The difference between the sale and buyback prices of the precious metal is currently set at 3.88%, provided the packaging is intact and meets technical requirements.