World News

Bangladesh: Gold prices hit a record high

The Bajus of Bangladesh made a significant mark in the gold market, setting a new record by successfully selling a substantial amount of gold at the target price. Each bhori (11.664 grams) was sold at Tk 119,637 per bhori, marking a significant increase in gold prices.

According to a note released by the association, the standing committee of Bajus pricing and control machinery officially confirmed a decision in a recent meeting.

According to previous records, the cost was Tk 117,573 six months ago.

The Bangladeshi market reached a significant milestone, The price of gold crossed Tk 1 lakh per bhori for the first time since July 20, 2020.

While Bangladesh may not be a major buyer of gold and platinum, it is widely recognised that changes in gold prices and domestic market volatility are related.

A Bajus official has stated that the price of pure gold rises when demand surpasses availability. 

Usually, people bring gold into the country under the baggage rule, after which it is sold and bought based on the international price. 

As a result, local gold prices fluctuate due to changes in the global market.

According to documents from the Ministry of Commerce, Bangladesh requires around 20 to 40 tonnes of gold annually. However, almost 80 percent of this demand is fulfilled through illegal smuggling, while the remaining amount is obtained through recycling.

In August of last year, the Bangladesh Bank implemented a new policy requiring a 100 percent margin for letters of credit related to gold imports. This policy aims to discourage gold importation and preserve foreign currency reserves.