AZE.US
Gold prices are rising in Azerbaijan as families rush to hold weddings and engagement ceremonies before the start of Muharram.
Muharram begins on June 16, while Ashura falls on June 25. The compressed wedding schedule has increased demand for jewelry, particularly in Baku’s major gold markets.
The seasonal surge, however, is only part of the picture.
Economist Natig Jafarli said prices in Azerbaijan are primarily determined by international gold markets rather than domestic supply and demand alone.
“The main factor is the price of an ounce of gold on global markets. Changes on international exchanges are directly reflected in the Azerbaijani market,” Jafarli said.
Gold remains expensive worldwide, pushing up prices for both locally made and imported jewelry. Inflation concerns, geopolitical tensions and changes in the value of the U.S. dollar are also affecting global prices, he added.
Demand usually rises during wedding seasons and holidays, as well as during periods when more people view gold as a safe-haven investment.
Jewelry sellers in Baku say the latest increase reflects both higher international prices and a short-term rush ahead of Muharram.
Demand may weaken once Muharram begins and the wedding season pauses. A sharp decline in prices, however, is considered unlikely as long as global gold prices remain elevated.