The price of gold in Bangladesh market has increased by 88 per cent in the last three years. In value terms, it is about Tk 63,697, according to the Bangladesh Jewellers Association (Bajus).
Bajus has adjusted gold price 10 times recently. Out of those, the association made an upward price adjustment of the world’s precious metal.
The country's gold market has been witnessing a rapid ups and downs since beginning of this year. Bajus has adjusted gold prices a total of 40th times till September 24, out of which prices have been increased 24 times. Even with the latest price adjustments, the price of gold has been hiked to the highest in the country's history. Jewellers said that if gold price goes up in the global market, it will have obvious impact on local market.
Bajus announces fresh price hike on Wednesday
The price of 22-carat gold has been increased by Tk 3,044 per bhori.
Each bhori (11.664g) of 22-carat gold will now cost Tk 138,708. Meanwhile, 21-carat gold will cost Tk 132,398, and each bhori of 18-carat gold will cost Tk 113,491.
Bangladesh Jeweller’s Association (BAJUS) announced the price hike on Wednesday (September 25), which it called a readjustment of the prices considering a rise in the price of pure gold in the local market.
The new price will be effective tomorrow (September 26).
Each bhori (11.664g) of 22-carat gold will now cost Tk 138,708. Meanwhile, 21-carat gold will cost Tk 132,398, and each bhori of 18-carat gold will cost Tk 113,491.
The traditional gold price has been set at Tk 93,160per bhori.
Bajus Standing Committee on Pricing and Price Monitoring Chairman and Bajus Vice President Masudur Rahman said if the price of gold fluctuates in the global market, the price will be readjusted in the country. Again, if the global market is downward, the price is reduced in the domestic market as well.
He said about 70 per cent of the local traders have already affected by this ups and downs in the gold prices. "The sales of big brand stores have also decreased drastically in recent times. And the situation of medium and small traders is even worse. This upward price is becoming a cause of loss for the entire gold business”.
When asked about the reason behind in price volatility, Masudur Rahman said, "There is a rapid fluctuation in gold prices in global world market due to the ongoing geo-political tensions, ongoing conflicts in Middle East and Ukraine, high dollar rates and US Federal Reserve's interest rate cut. Rising gold prices in global market has an impact on the country's market as well”.
“Currently, all central banks in the world are hoarding gold instead of dollars. Besides, investors are buying more gold in the hope of higher profits. Above all, the price of precious metal is increasing rapidly in the world market,” Masud told The South Asian Times.
on Tuesday, gold prices in India reached an all-time high of Rs 76,911 per 10 gm, with the gold traders expecting the price of the yellow metal to cross Rs 78,000 per 10 gm soon. The key drivers behind this rally can be attributed to the positive global cues followed by strong anticipation for further rate cuts by the US Federal Reserve in the upcoming meetings. The geopolitical tensions between Israel and Lebanon are also pushing gold prices up.
Meanwhile, gold continued to climb new highs in global market as traders digested fresh data showing a moderation in US business activity while awaiting key economic readings due later this week for clues on the Federal Reserve’s next move.
For the first time in history, spot gold maintained above the key $2,600/oz. level set last week, up 0.2 per cent to $2,627.34/oz. Earlier, it had hit a new record high of $2,635.05/oz. US gold futures rose 0.3 per cent to $2,653.70/oz yesterday.
The London Bullion market, a wholesale over-the-counter market for the trading of gold, silver, platinum and palladium, has advanced since the Federal Reserve lowered its benchmark interest rate by half a percentage point last week, building on what was already a record-setting year for the precious metal. Rate cuts are often seen as positive for the non-yielding gold.
Bullion witnessed a 27 per cent rally in gold prices this year, supported by robust purchasing by central banks and haven demand amid ongoing war in the Middle East and Ukraine.
For Michael Cuggino, president at Permanent Portfolio Family of Funds, these bullish factors will help gold continue to trend higher over the long term despite some choppiness in prices in the near term.
