Gold prices hit record high for the third time this week

Gold prices in the domestic market set a record high for the third time this week, with a five-gram bar now priced above 5.89 mln soums, according to the Central Bank of Uzbekistan.

The Central Bank reports that the price for a ten-gram bar has risen to nearly 11.79 mln soums, a twenty-gram bar to 23.57 mln soums, and a fifty-gram bar to 58.93 mln soums. Since the start of 2024, investments in gold would have generated a 39% return for investors.

Analysts attribute the rise in global gold prices to a new cycle of rate cuts by major central banks, including the European Central Bank (ECB) and the Federal Reserve (Fed). Investor concerns over the outcome of the U.S. presidential election have also bolstered support for the precious metal.

Data from the World Gold Council (WGC) reveals that demand for gold surpassed $100 billion for the first time in history in Q3 2024. The Council identified the FOMO (fear of missing out) effect as a new factor driving interest, as investors, observing rapid price increases, are more inclined to purchase gold in hopes of continued upward momentum.