In recent years, global economic uncertainties, geopolitical tensions, and inflationary pressures have once again directed investors' attention to gold, traditionally considered a “safe haven”. Particularly, the record increases in gold prices recorded since last year have further strengthened interest in this precious metal. Price changes in the market since the beginning of this year, as well as forecasts for the upcoming periods, raise important questions among investors: is it more advisable to direct funds to banks, real estate, or gold at present?
In his statement to Modern.az, Rovshan Amircanov, Deputy Chairman of the Board of the Azerbaijan Jewelers Association, clarifying these and other questions, noted that sharp increases in global gold prices have been observed over the past year, and this trend has not fully stopped at the beginning of 2026.
“On world exchanges, gold prices have approached record levels in recent days; although short-term pullbacks have occurred at certain intervals, the overall direction remains upward.
Since the beginning of the year, a more volatile movement has been observed in the market. Instability in international financial markets, expectations regarding interest rates, and macroeconomic indicators are among the factors increasing investors' attention to gold. As demand rises, price increases are naturally transferred to the local market. Since the price of gold in Azerbaijan follows changes in international markets, daily price updates and slight increases are recorded at certain periods. Furthermore, the final price is influenced not only by the raw material cost but also by the manufacturing of the product, labor level, logistics, and other additional expenses”.
The Deputy Chairman also emphasized that prices in the domestic market are not formed uniformly and can vary depending on sales points:
“These differences are mainly determined by the product's brand, design, weight, and craftsmanship quality. In other words, gold of the same fineness can be offered at different price ranges in various stores, and this depends on commercial conditions as well as the general market trend.
Looking at the buying side of the market, no sharp weakening is observed in the overall picture. Stability is more noticeable across individual segments: particularly, the relatively stable demand for 585 and 750 fineness gold products stands out. In investment-oriented purchases, an increasing interest in bullion and coin formats is observed. Since no significant price jumps have been recorded in the precious stones market, sales are also reported to continue mostly stable”.
R. Amircanov also added that expectations regarding the future price of gold are based on various scenarios:
“A number of international financial institutions consider it possible that the appreciation of gold may continue in 2026 and, in some estimates, could approach the level of 5,000 US dollars. At the same time, it is not excluded that market volatility will continue in the near future and prices may show short-term pullbacks at certain intervals”.
The association official stated that, regarding investment, gold has advantages in terms of portfolio diversification. In his opinion, holding a portion of assets in the form of gold to distribute risks can play a protective role in some cases.
Economist Eldeniz Amirov stated that the upheavals occurring in the global economy, as well as on the geopolitical plane, have made investment in the real sector riskier for investors:
“Against the backdrop of increasing risks, investors act more cautiously, and for this reason, gold continues to serve as the most reliable “safe haven” today. Looking at historical experience, we also see that gold prices typically rise during periods of increased risk and uncertainty in the world.
It is in this context that gold is not expected to depreciate in 2026. On the contrary, there is a possibility of some appreciation, and even a rise in price above the 5,000 level is not excluded. The main reason for this is investors' hesitation to invest in the real sector.
Currently, the openly voiced opinions of the head of the US Federal Reserve System regarding pressures from the Washington administration also draw attention. The existence of political pressures to lower interest rates could somewhat undermine the reliability of the dollar. This, in turn, could increase demand for gold and create conditions for its price to rise”.
E. Amirov also noted that deciding which direction to allocate capital is an individual decision for each investor:
“From this perspective, it would not be appropriate to give specific investment advice. In general, the globally accepted approach is that available funds are distributed across several directions and diversified.
Typically, a portion of funds is directed to gold, a portion to real estate, and a portion to company shares. If the volume of funds is large, investing in various types of real estate is also preferred. At the same time, keeping a certain share as liquid funds is also considered important”.
According to the economist, investing existing capital in only one direction carries high risk:
“Professional investors typically diversify their investment portfolios and distribute their funds among various assets. For example, approximately 20-25 percent is directed to gold, 30 percent to real estate, 30-40 percent to other financial assets, and 15-20 percent is held as cash for liquidity purposes, to be used when necessary”,– E. Amirov noted.
