Gold prices in Bangladesh rose sharply on Thursday morning, with the Bangladesh Jewellers Association (BAJUS) lifting the rate for 22-carat gold by Tk5,482 per bhari. The new price took effect at 10am nationwide, according to bdnews24.com, and rates for other grades were raised as well.
The increase came roughly 20 hours after the previous revision. Under the new schedule, hallmark 22-carat gold sells for Tk19,690 a gram, which works out to Tk2,29,664 a bhari at 11.664 grams to the bhari.
Why it matters
Gold is a store of value for a large share of Bangladeshi households, and wedding-season demand makes the metal a sensitive cost for families. Three upward revisions in as many days reverse a stretch of declines and put the local market back near its recent highs. The moves also track swings in the international spot market, where bullion has been volatile through late October and early November.
Three increases in three days
BAJUS raised the 22-carat rate by Tk3,266 a bhari on the morning of November 2, taking it to Tk2,20,858. On Wednesday, shortly before 2pm, the association added another Tk3,324, bringing the price to Tk2,24,182. Thursday's Tk5,482 increase built on that, bdnews24.com reported.
The recent run follows a period of cuts. On October 28, BAJUS raised the rate by Tk2,216 after four consecutive reductions that had together removed Tk10,439 a bhari. The next day, October 29, it added Tk1,633, putting the price at Tk2,24,707 — a two-day gain of Tk3,849.
Prices then fell back. BAJUS cut Tk1,633 on October 30 and Tk5,482 on October 31, a combined drop of Tk7,115 over the two revisions.
Before that, the association had lowered 22-carat rates four times in two weeks, for a total of Tk10,439: Tk3,266 on October 13, Tk1,691 on October 22, Tk2,158 on October 23 and Tk3,324 on October 25.
Other grades and the record high
Thursday's revision lifted every grade. The 21-carat rate is now Tk2,19,342 a bhari, up Tk5,249 from Tk2,14,093. The 18-carat price rose Tk4,491 to Tk1,88,374, and traditional-method gold gained Tk3,616 to reach Tk1,53,848 a bhari.
The highest price recorded in the domestic market remains Tk2,86,001 a bhari for 22-carat gold, set on January 29 this year, when BAJUS moved in step with the international market. On that day, spot gold abroad climbed past $5,500 an ounce and touched $5,591.61 at one point before trading at $5,538.69, bdnews24.com reported.
BAJUS said in a statement that the price of pure local gold had risen and that the new rates were set after weighing overall market conditions.
What is driving the international market
Spot gold stood at $4,125.56 an ounce as of 2pm Bangladesh time on Thursday. When BAJUS raised rates on Wednesday, the spot price was $4,040.78 an ounce. On October 30, during a run of losses, spot gold had slipped below $4,000.
Reuters reported on Thursday that bullion had reached its highest level in more than two weeks, attributing the rise to a weaker US dollar and lower yields on Treasury bonds. The agency linked the dollar's decline to the outcome of the US midterm elections, which it described as a strong result for Democrats. Cheaper oil has eased some inflation concerns, and Reuters also cited fresh optimism about a possible peace deal between the United States and Iran.
Silver
Hallmark 22-carat silver is selling at Tk300 a gram, or Tk3,499 a bhari, according to the BAJUS schedule cited by bdnews24.com.
What to watch: whether spot gold holds above the $4,000 mark and whether BAJUS revises rates again, given that the association has now changed prices on four of the past seven days.
