Gold in Bangladesh became cheaper on Friday, with the Bangladesh Jewellers Association (Bajus) lowering the price of 22-carat bullion by Tk1,633 per bhori, according to bdnews24.com. The cut follows two consecutive rounds of increases earlier in the week.
Under the revised schedule, hallmark 22-carat gold now sells at Tk223,074 per bhori, down from Tk224,707 the previous day. Bajus also reduced the price of silver.
Why it matters
Gold is a major store of household savings in Bangladesh, and small movements in the per-bhori rate are felt quickly by buyers preparing for weddings and by families holding jewellery as an inflation hedge. The reversal also shows how directly local rates track the international bullion market, which bdnews24.com reports has weakened through October.
What each carat now costs
Bajus sets its rates per gram and per bhori, with one bhori equal to 11.664 grams. According to the new list, hallmark 22-carat gold is priced at Tk19,125 per gram, which works out to Tk223,074 per bhori.
The other categories moved in step. A bhori of 21-carat gold is now Tk213,043, down Tk1,575. The 18-carat rate is Tk182,950, a drop of Tk1,341. Traditional-method gold, which is not hallmarked to the same standard, is set at Tk149,474 per bhori, Tk1,108 lower.
In its press release, Bajus said the adjustment reflected a decline in the local price of pure, or tejabi, gold and was made after reviewing overall market conditions. The association issues rates rather than trading on its own account, and jewellers across the country generally follow its schedule.
Two days of gains wiped out
The drop comes directly after a sharp upward run. Bajus had raised 22-carat gold by Tk2,216 per bhori on Wednesday and by a further Tk1,633 on Thursday, bdnews24.com reports. Together, those two revisions added Tk3,849 per bhori in two days.
Friday's cut returns the 22-carat rate almost exactly to where it stood before Wednesday's increase, leaving it Tk1,633 below the Thursday peak.
Silver followed the same direction. Hallmark 22-carat silver is now Tk3,674 per bhori, against Tk3,849 previously, a reduction of Tk175.
Global prices at a July low
The local correction mirrors the international market. A Reuters report cited by bdnews24.com on Friday said spot gold fell 0.6 percent to $3,995.42 an ounce, its weakest level since July 17.
Across October, international gold has lost roughly 3.8 percent, according to the same reporting. Market analysts quoted by bdnews24.com attributed the slide to strong United States economic growth, inflationary pressure and the prospect of higher interest rates, all of which tend to reduce demand for the metal.
For Bangladeshi buyers, the effect is filtered through both the dollar gold price and the taka exchange rate, which is why local rates do not always move one-for-one with the international figure. Bajus typically revises its schedule when the cost of pure gold in the local market shifts enough to justify a change.
What to watch
Whether the decline holds will depend on the next few sessions in the international market and on the local price of pure gold that Bajus monitors. Buyers waiting for a further fall should note that the association has already moved rates three times this week, in both directions.
