By Tural Tagiyev
In the final months of 2024, the gold market has undergone significant changes. Gold prices have started to rise rapidly once again, and experts predict further increases due to ongoing political instability. This raises the question: what factors will determine the dynamics of gold prices in the near future, and what can we expect at the end of 2024 and the beginning of 2025?
Rovshan Amirjanov, Deputy Chairman of the Board of the Azerbaijan Jewelers Association and Chairman of the Technical Committee for Standardization of Precious Metals and Stones, noted in an interview with News.Az that the value of precious metals is nearing historic highs. “Investments in gold appear extremely attractive as the price per ounce on the commodity exchange today stands at $2,470. Further price increases are expected, considering the political turmoil in various regions of the world, the crisis in the Middle East, ongoing conflicts, as well as economic uncertainty in the U.S. and China,” he explained.
Amirjanov also emphasized that an important factor influencing the market is the anticipated easing of monetary policy by the U.S. Federal Reserve. He pointed out that the current price of gold is formed on the London Bullion Market Association (LBMA) based on the balance of supply and demand. However, domestic prices in the country also take into account the cost of producing jewelry and competitive conditions. “Last week, the price of an ounce of gold on global markets exceeded $2,500, reaching a historic high,” he added.
In the near future, the price of gold per ounce may surpass $2,600, as confirmed by research showing high demand for bullion and coins with a 999.9 purity, which are mainly acquired as investment assets. Amirjanov also noted that changes in the global gold market will inevitably affect the Azerbaijani market, where prices continue to rise. The main countries from which Azerbaijan imports gold, precious metals, and stones are Turkey, the UAE, Italy, Russia, and China.
“According to the Azerbaijan Jewelers Association, 60-65% of the jewelry products presented on the market are produced in Azerbaijan. This indicates the high quality of local products, which are on par with imported counterparts,” he explained.
The expert predicts that the upward trend in gold prices on the Azerbaijani market will continue until the end of the year. Current prices on the London commodity exchange range between $2,465 and $2,470 per ounce, while the price of one gram of gold with a 999.9 purity is $79 (approximately 133 manats). Meanwhile, domestic prices are 140-150 manats per gram for gold with a 999.9 purity, 130-150 manats per gram for gold with a 750 purity, and at least 100 manats per gram for gold with a 585 purity.
Amirjanov also reminded that four new state standards related to precious metals and stones will be adopted in Azerbaijan this year, which will further develop the jewelry market. These standards include the classification and sorting of precious stones, hallmarking and assaying, as well as banking metals.
LBMA