Azerbaijan.US
Gold prices in Azerbaijan have increased in recent weeks, reflecting broader global trends, yet consumer demand remains resilient, particularly amid the ongoing wedding season.
Market participants say that while higher prices have affected purchasing power, interest in gold jewelry has not declined. On the contrary, concerns about further price increases have encouraged some buyers to make purchases sooner rather than later.
Retailers report that demand is especially strong for wedding-related jewelry. At the same time, consumer preferences have shifted. Buyers are increasingly opting for Turkish gold, which is seen as more affordable compared to Italian and Arab-made products, whose prices have risen more sharply.
As of early January, 585-grade gold is selling at approximately 170–180 manats per gram, while 750-grade gold is priced in the 200–210 manat range. Arab gold remains significantly more expensive. Sellers note that customers are adapting by choosing lighter items or simpler designs to stay within budget.
Despite steady demand, consumers acknowledge that gold prices have become more volatile. Buyers point out that prices for the same item can change noticeably within a single week, adding uncertainty to purchasing decisions.
Analysts attribute the rise in local prices primarily to global factors. In recent years, many countries have increased gold purchases as part of their reserve strategies. Azerbaijan has followed this trend, with gold forming a portion of the State Oil Fund’s reserve assets.
In addition, expectations of continued interest rate cuts in the United States in 2026 have supported higher gold prices internationally. Lower rates typically increase gold’s appeal as an alternative store of value, pushing prices upward on global markets and, by extension, in domestic markets such as Azerbaijan.
As a result, the cost of gold jewelry – particularly for weddings and gifts – has risen significantly. Market participants estimate that consumers now spend 70–75% more to purchase the same items compared to previous periods.
