Gold flirting with highs near Tk 1 lakh

The price of 22-carat gold has gone up in Bangladesh for the second time in about a week, reaching a record-high of nearly Tk 1 lakh per bhori (11.66 grammes).

Having been adjusted by a maximum of Tk 1,516 per bhori, 22-carat gold will now cost Tk 99,144 for that amount, according to a press release from the Bangladesh Jewellers' Association issued yesterday.

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Bajus said they revised the cost of gold considering the highly volatile changes in pure gold prices in the domestic market.

The new price will come into effect across the country from today.

On March 18, Bajus had increased the price of the precious metal to its previous high of Tk 98,794 per bhori citing the higher cost of pure gold in local markets.

It is a safe-haven investment that offers diversification to an investor's portfolio, helping it withstand volatility or short-term swings in the prices of assets that are more vulnerable to market whims

According to a Reuters report, spot gold price was down 0.6 per cent at $1,968.25 per ounce by 2:26 pm EDT (18:26 GMT), after prices moved as much as 0.4 per cent higher following data that showed US consumer spending rose modestly in February.

US gold futures settled down 0.6 per cent at $1,986.2.

Gold has traditionally been an asset that people go to for safety.

It is a safe-haven investment that offers diversification to an investor's portfolio, helping it withstand volatility or short-term swings in the prices of assets that are more vulnerable to market whims.

Safe-haven assets typically perform well during downturns and financial crises, when riskier assets underperform.

Gold is considered to be a safe-haven asset because it has acted as a store of value, maintaining its purchasing power for thousands of years. The reality is that over the long term, the price of gold remains constant while the price of everything else goes up.

With the price of gold set to increase, the cost of hallmarked 21-carat gold bars weighing about 12 kilogrammes will now be Tk 94,653 while 18-carat ones will be Tk 81,123 and traditional gold bars Tk 67,593, according to Bajus.

However, the price of silver remains unchanged.

Till Saturday, 22-carat gold ornaments were being sold at Tk 97,628 per bhori.

Meanwhile, 21-carat gold jewellery were going for Tk 93,195 per bhori, 18-carat Tk 79,898 per bhori and traditional gold Tk 66,543 per bhori.

But from today, 22-carat gold ornaments will cost Tk 1,516 more, 21-carat Tk 1,458 more, 18-carat Tk 1,225 more and traditional gold Tk 1,500 more.

Earlier on March 23, gold price was increased by Tk 7,698 to Tk 98,794, which was the highest rate in the country's history.