The gold market in Bangladesh has been more volatile than ever, with prices changing 17 times in the past three months, overwhelmingly moving upwards.

But why have gold prices been rising so frequently? Traders and analysts attribute this to the aggressive policies of central banks worldwide. In 2024, for the third consecutive year, central banks collectively purchased over 1,000 tons of gold, contributing significantly to the price surge.

The Bangladesh Jewellers' Association (BAJUS) regulates local gold prices. Over the last three months, the association has raised prices 14 times and lowered them three times.

As a result, the price of gold has increased by Tk 47,000 per bhori compared to a year ago. During Eid-ul-Fitr 2024, the price of 22-carat gold was Tk 1.11 lakh per bhori, whereas it now stands at Tk 1.58 lakh.

Gold prices are primarily driven by fluctuations in the global market, which in turn affect local prices. While international gold prices continue to fluctuate, recent trends show that increases are more frequent and significant than decreases.

Gold prices are increasing due to geopolitical instability, US pressure to raise import tariffs on various products, and fears of a tariff war. These factors have created political, diplomatic, and economic uncertainties, prompting many investors to turn to gold as a safe haven. Some are even pulling their capital from the stock market to invest in gold.

Analysts also cite the US tariff policy and continued gold purchases by central banks as key drivers behind the rising prices.

In 2024, for the third consecutive year, central banks around the world bought more than 1,000 tons of gold, further fueling the price surge.