United News of Bangladesh

The soaring price of gold in the global market is having a direct impact on Bangladesh, with domestic gold prices reaching record highs. As the surge continues, many are speculating whether the price per bhori will surpass Tk 2 lakh in the near future. According to the latest figures from the global spot market, gold prices have reached an all-time high of $2,800 per ounce (2.43 bhori). In line with this trend, the price of 22-carat gold in Bangladesh now stands at Tk 144,890 per bhori, the highest in the country’s history. A Sharp Rise Over the Years Data from the Bangladesh Jewellers’ Association (Bajus) shows that the price of 22-carat gold was only Tk 6,900 per bhori that in 2000. By 2010, this figure had risen to Tk 42,165. A decade later, in 2020, the price climbed further to Tk 69,867 per bhori. In the past 15 years, gold prices in Bangladesh have increased by Tk 137,000 per bhori. Notably, in the four years since the COVID-19 pandemic, prices have surged by Tk 75,000. In July 2023, gold prices in the country surpassed Tk 1 lakh per bhori for the first time, and within 18 months, they have risen by nearly Tk 45,000. Gold price jumps to Tk 1.56 lakh per bhori, effective from Thursday Given the current rate of increase, analysts predict that by the end of 2026, gold prices could approach Tk 2 lakh per bhori. Market Experts Weigh In Veteran gold trader Govinda Haldar, who has been in the business for five decades at Dhaka’s Tanti Bazar, recalled that before Bangladesh’s independence, the price of a guinea gold coin was Tk 150. While this may seem negligible today, it was considered expensive at the time. He believes that if the current trend persists, gold prices could reach Tk 2 lakh per bhori within a year. However, Bajus Price Determination and Monitoring Committee Chairman Masudur Rahman cautions that it is difficult to predict whether prices will reach Tk 2 lakh by 2026. “The way global demand is increasing and central banks are stockpiling gold, it wouldn’t be surprising if the price does hit Tk 2 lakh. However, it all depends on market dynamics,” he said. In 2024 alone, Bangladesh adjusted gold prices 62 times, with 35 increases and 27 reductions. So far this year, four price adjustments have already been made, pushing the price of this precious metal to new heights. Global Demand Driving Prices A report by the World Gold Council highlights that since 1971, gold prices have increased by an average of 8% per year in dollar terms. This steady rise, combined with gold’s ease of conversion into currency, continues to drive demand. Gold price up by Tk 1,155 per bhori Global gold demand now stands at 3,034 tonnes annually, valued at $233 billion. While gold is primarily used for jewellery in South Asia, many countries view it as a key investment asset. Approximately 40% of the world’s gold is held for investment, compared to 33% used for jewellery. Central banks hold 20% of the world’s gold reserves, and 7% is used in technology sectors, such as chip manufacturing.