Prices for gold bars produced by the National Bank of Tajikistan (NBT) have risen 25 percent since the beginning of the year.
According to data from Tajik central bank, the price for the 5-gram gold bar rose from 3483 somonis on January 1, 2022 to 4,354 somonis on March 11.
The price the 100-gram gold bar has reportedly risen 17,423 somonis over the reporting period, reaching 84,790 somonis, with similar price rises in 10-, 20- and 50-gram gold bars.
Recall, the NBT-produced bars fell on average 4.1 percent in prices in a year to December 31, 2021, after a 43-percent rise during 2020.
The gold bars produced by the National Bank of Tajikistan were released into free circulation in June 2017.
A gold bar, also called gold bullion or a gold ingot, is a quantity of refined metallic gold of any shape that is made by a bar producer meeting standard conditions of manufacture, labeling, and record keeping. Larger gold bars that are produced by pouring the molten metal into molds are called ingots. Smaller bars may be manufactured by minting or stamping from appropriately rolled gold sheets.
Gold is measured in troy ounces, often simply referred to as ounces when the reference to gold is evident. One troy ounce is equivalent to 31.1034768 grams.
The London Gold Fixing (or Gold Fix) is the setting of the price of gold that takes place via a dedicated conference line.
Besides, real costs of making gold bars are calculated.
The then-head of the NBT Jamshed Nourmahmadzoda told reporters in Dushanbe on February 5, 2020 that gold bars with a total weight of 100 kilograms are waiting for their customers in storage of Tajik central bank.
“By president’s order we have produced gold bars with a total weight of 100 kilograms and we are gradually selling them,” Nourmahmadzoda noted on February 5.
According to him, citizens of the country can buy the NBT-produced bars using their passports. “No other documents are required,” Nourmahmadzoda said.
Each citizen of Tajikistan can buy gold bars totally weighing one kilogram per year.
Meanwhile, some international experts consider that Russia-Ukraine war has pushed up global gold prices.
Business Standard says inflationary fears triggered a rush for safe haven investments during the ongoing market volatility that pushed up the global gold price to US$2,000 per ounce on March 7.
Accordingly, the fears of supply shortages due to the Russian-Ukrainian conflict along with robust demand have kept prices higher.
Besides, sanctions on Russia, which is a major producer of Gold, are expected to reduce the supply.
According to Tapan Patel, Senior Analyst (Commodities), HDFC Securities: “The yellow metal rallied on geopolitical risk and inflation worries as Western world is mulling for harsher sanctions on Russia, including oil import ban.”
“We expect gold prices to trade up for the day with 'COMEX' Spot gold support at $1970 and resistance at US$2,050 per ounce. MCX Gold April futures resistance at Rs 54,000 and support at Rs 52,800 per 10 gram."
In addition, IIFL Securities VP, Research, Anuj Gupta said: “Geopolitical tension between Russia and Ukraine plays a supportive role for gold prices, however this environment is negative for global equity markets.”
“In spot gold may test US$2,050 and Silver US$27 levels very soon.”
