Gold hits Tk 127,942 per bhori

Gold prices hit a historic high of Tk 127,942 per bhori, with the Bangladesh Jewellers Association (Bajus) deciding to bring the new rate into effect yesterday.

The local jewellers raised prices of 22-carat gold by Tk 1,936 per bhori (11.664 grams), according to a press release shared by Bajus.

In a meeting on Sunday, the association's standing committee on pricing and price monitoring took the decision, citing an increase in pure gold prices in the local market.

Jewellers have raised the prices of gold to a historic high in line with rising pure gold prices and hike in the global market

According to industry people, jewellers have hiked the price of gold to a historic high in Bangladesh in line with rising pure gold prices and growth in the global market.

Pure gold prices also increase each time there is a supply-side crisis.

Gold prices have been rising for more than a year in Bangladesh and crossed the Tk 100,000 per bhori mark for the first time on July 20 last year.

The latest uptick marked the fourth time that gold prices have gone up since Sheikh Hasina resigned her post as prime minister and fled the country on August 5 in the face of a mass uprising.

Bajus announced that a press conference will be held today to address gold smuggling and money laundering, adding that it will urge the law enforcement to play an active role in this regard.

According to a Reuters report, gold held near record highs on Monday, buoyed by a softer dollar and dovish remarks from US Federal Reserve Chair Jerome Powell, bolstering expectations of a September interest rate cut.

Spot gold was up 0.6 percent to $2,526.15 per ounce at 1159 GMT, about $5 shy of the record high of $2,531.60 hit last week. US gold futures also gained 0.6 percent to $2,561.90, it said.

Although the country does not import significant quantities of gold, prices remain linked with international trends.

Annual demand for gold in the country currently stands between 20 and 40 tonnes.

At present, about 80 percent of the demand is met by smuggled gold, according to industry people.

For years, gold has been considered a store of value.

As gold has historically maintained its value over time, it serves as a form of insurance against adverse economic events.

When an adverse event lingers for a while, investors may decide to pile their funds into gold, which drives up its price.