Gold bar and coin prices in Uzbekistan moved past the Uzbekistani som (UZS) 1mn ($79) per gram mark on May 16, the Central Bank of Uzbekistan (CBU) announced .

The day on day price increase was 1.8%. The gain since the beginning of the year thus stood at 18.9%.

As per the latest data, a 5-gram gold bar was commanding a value of UZS5.04mn ($396), while the price per gram was slightly more than UZS1mn.

The CBU decision to introduce gold bars and commemorative coins for public sale in 2018, followed by provisions for individual buyers to export them under specified conditions, was aimed at reducing the country's reliance on forex.

Economic analysts view gold as a strategic asset that not only broadens investment avenues but also serves as a hedge against economic uncertainties, facilitating the preservation of savings amidst volatile market conditions.

In April, Uzbekistan's international reserves surged by $918mn to reach $35.1bn, marking a record high in the period since April 2023. Despite a $239mn dip in FX reserves, the value of gold reserves drove the headline figure. 

Although the physical volume of gold reserves saw a slight decline to 11mn troy ounces, rising gold prices countered the effect, with a 2.4% increase in April alone. 

This contrasts with the $1bn decline in reserves by the end of 2023, the first decrease since 2018, with a nearly 25-tonne decline in gold reserves over the year. Gold mining, particularly in regions like Navoiy and Tashkent, continues to be a cornerstone of Uzbekistan's economic growth.