AZE.US
Global gold prices edged lower at the start of the Asian trading session after a recent surge fueled by escalating tensions involving the United States, Israel and Iran.
Despite the decline, gold remains at historically high levels, trading above $5,000 per ounce. The ongoing geopolitical uncertainty has continued to support demand for so-called safe-haven assets, including gold.
According to market data, spot gold fell about 2% to $5,064.71 per ounce, while gold futures declined roughly 1.6% to $5,073.21 per ounce.
Why prices are easing
Economist Natig Jafarli, speaking from Baku, said the recent decline largely reflects investors taking profits after gold’s rapid climb in recent weeks.
He noted that the price of gold had previously surged to around $5,700 per ounce, prompting some investors to sell part of their holdings and lock in gains.
“This is a normal market process. After sharp increases, investors often sell part of their assets to secure profits, which can temporarily push prices lower,” Jafarli said.
Oil prices and geopolitical tensions
Jafarli added that rising oil prices may contribute to short-term volatility in global markets, but the relationship between oil and gold prices is not always direct.
In many cases, both commodities can rise simultaneously, especially during periods of geopolitical tension.
The recent surge in oil prices, he said, is largely tied to instability in the Middle East, rather than to underlying economic fundamentals.
“If tensions in the region ease, oil prices could decline as well,” he said.
Why gold still matters
Analysts say gold continues to play an important role as a safe-haven asset during periods of political and economic uncertainty.
For investors in Azerbaijan and other regional markets, gold remains a widely used store of value, particularly during times of global instability.
As a result, even short-term price corrections have not significantly reduced interest in the metal among international investors and buyers in markets such as Baku, where gold trading and jewelry demand remain strong.