The Central Bank sold 1 ounce of gold for 7488.6530 manat on the first working day of 2026. February started at 7950.7215, March at 9104.6985, April at 7950.8490, May at 7834.7050, June at 7675.2960, July at 6759.4465 manat.
1 ounce equals 31.1 grams. At this rate, the price per gram of gold was offered at 240.7 manat at the beginning of the year and 217.3 manat in the middle of the year.
What factors affect the price of gold in Azerbaijan?
Speaking to Medianews.az on the subject, Rovshan Amircanov, chairman of the Technical Committee on "Precious Metals and Precious Stones" standardization at the Azerbaijan Standardization Institute and deputy chairman of the "Azerbaijan Jewelers Association" Public Union, said that in our country the price of gold is influenced both by processes in international financial markets and by internal market factors: “First of all, it should be noted that gold acts as a precious metal and a capital preservation tool primarily priced in US dollars in global commodity and investment markets. For this reason, changes in the price of gold per ounce on international exchanges also affect its local market value in Azerbaijan.
One of the main factors affecting the price of gold is the balance of supply and demand in the international market. During periods of increased geopolitical tension, uncertainty in financial markets, and rising inflation expectations, investors tend to give more preference to gold to preserve capital value. This can lead to increased investment demand and corresponding price rises.
Another important factor is the value of the US dollar in international currency markets and the monetary policies of leading central banks. Because gold is mainly traded in US dollars in the global market, changes in the dollar index affect demand for the precious metal. Appreciation of the US dollar can make gold purchases relatively more expensive for investors using other currencies, potentially weakening demand.”
According to R. Amircanov, the level of interest rates also influences investors' choices: “When interest rates rise, government bonds, deposits, and other income-generating financial instruments become more attractive. Since gold generates no interest or dividend income, investment interest in it may decrease in the short term in such an environment. Conversely, a decrease in interest rates can increase demand for gold.
In the domestic market, the retail price of jewelry products is not determined solely based on the international value of pure gold. The final retail price is formed taking into account the carat and weight of the product, production technology, processing quality, complexity of design, value of precious stones used, as well as import, logistics, and trade expenses. Therefore, the price of finished jewelry products offered at retail can differ from the pure gold value reflected in the international market and Azerbaijan Central Bank indicators.
Overall, the price dynamics of gold in the country are determined by trends in international commodity and financial markets, changes in the currency market, the monetary policy of leading central banks, inflation and geopolitical risks, as well as the domestic balance of supply and demand.”
Akif Nasirli, chairman of the Liberal Economists Center, also stated in an interview with Medianews.az that both global and domestic economic factors influence the price of gold in Azerbaijan. According to him, the main factor is the price of gold in international markets: “Since gold is priced in US dollars on the global market, changes in international prices are directly felt in Azerbaijan.
Alongside this, the exchange rate of the US dollar against other currencies, interest rate policies of leading central banks, inflation expectations, geopolitical risks, and global economic uncertainties are among the main factors affecting gold prices. Investors tend to buy more gold as a reliable investment during periods of increased risks, which can increase its price.
In the domestic market, prices are influenced by the official gold price set by the Central Bank, the stability of the manat’s exchange rate against the US dollar, import and logistics costs, processing and sales margins, as well as the market's supply and demand balance. In jewelry products, besides these factors, production costs, design, processing quality, and sellers' commercial margins also play an important role in determining the final price.”
According to A. Nasirli, the observed fluctuations in gold prices during various months of the year are mainly related to price volatility in global markets and processes in international financial markets: “Therefore, the price of gold in Azerbaijan is shaped more under the influence of global economic processes than internal market factors.”
Nailə Qasımova,
Medianews.az