Global gold price surge to hit wedding shoppers harder than economy, says Armenian economist

Global gold prices have surged by 53% year-on-year, reaching a record $4,381.21 per ounce, with futures up another 2% this week. In Armenia, 999.9 gold trades at $127.9 (around 48,800 drams) per gram, and 585 gold at about 28,000 drams.

Economist Aghasi Tavadyan from the Amberd Research Center told Panorama.am on Friday that the sharp rise stems from growing global uncertainty and the gradual erosion of the U.S. dollar’s dominance as China accumulates more gold reserves while reducing U.S. bond holdings.

Tavadyan said gold prices typically climb when one global power yields to another and that the current rally “is just beginning”. He noted that Armenia’s economy, heavily tied to global markets, will feel only limited effects since the Central Bank sold its gold reserves, leaving the country without significant holdings.

Tavadyan stated the impact will be negative but narrow for ordinary Armenians. Incomes measured in gold have effectively fallen and jewelry prices have doubled. “This mainly affects those planning weddings, because gold jewelry is now twice as expensive as before,” he said, adding the overall macroeconomic impact on Armenia will remain modest.