Gold prices in Bangladesh have once again reached an all-time high, setting a new record that has caught the attention of the entire nation. The Bangladesh Jewellers Association (Bajus) recently announced a significant price hike, with the cost of 22-carat gold rising by Tk 2,904 per bhori (11.664 grams), effective from August 19, 2024. This brings the current price of a bhori of 22-carat gold to Tk 122,985, marking the highest ever price in the history of Bangladesh.
Background of the Price Hike
This latest surge in gold prices follows a series of increments over the past year, reflecting both global market trends and local economic factors. The Bajus standing committee on pricing and price monitoring, responsible for setting and adjusting gold prices, made the decision during a meeting held on August 18, 2024.
Just a little over a month ago, on July 15, 2024, Bajus increased the price of gold to Tk 120,080.88 per bhori. This continuous upward trend has made gold less accessible for many people, particularly those planning weddings or other significant life events where gold is traditionally a key element.
Detailed Breakdown of Gold Prices
With this latest adjustment, the price of 21-carat gold has also seen a notable increase. The price for this category has risen by 2.42 percent, now standing at Tk 117,398.16 per bhori. This increase is part of a broader trend of rising gold prices that has been ongoing since last year.
Update Gold Price in Bangladesh – Bangladesh Jewellers Association (Bajus)
Bangladesh first witnessed gold prices surpass the Tk 100,000 mark per bhori on July 20, 2023. Since then, prices have continued to climb, reflecting global economic uncertainties, fluctuations in the international gold market, and the depreciation of the local currency against the US dollar.
Factors Contributing to the Price Increase
Several factors have contributed to the rising gold prices in Bangladesh:
- Global Market Trends: Gold prices are often influenced by global economic conditions. When there is uncertainty in the global economy, investors tend to buy gold as a safe-haven asset, driving up its price. Recent global events, including inflationary pressures, geopolitical tensions, and currency fluctuations, have all played a role in pushing gold prices higher.
- Local Economic Conditions: The value of the Bangladeshi Taka against the US dollar has been under pressure, making imports more expensive. Since gold is imported, the weakening Taka has led to higher gold prices domestically.
- Increased Demand: Despite the rising prices, there remains strong demand for gold in Bangladesh, especially for weddings and other cultural events. This consistent demand, coupled with limited supply, has also contributed to the price hikes.
- Speculation and Investment: In times of economic uncertainty, gold is often seen as a secure investment. As a result, more people may be buying gold as a way to protect their wealth, further driving up prices.
Impact on Consumers and the Economy
The continuous rise in gold prices is expected to have several implications for both consumers and the broader economy in Bangladesh. For consumers, particularly those from middle and lower-income groups, the higher prices mean that gold jewelry and ornaments may become increasingly out of reach. This could impact traditional practices and ceremonies where gold plays a central role.
For the economy, the rising cost of gold could lead to a decrease in consumer spending on gold-related products, potentially affecting the jewelry industry. On the other hand, those who have already invested in gold may see their investments appreciate in value, which could encourage more people to consider gold as a form of savings or investment.
Outlook for the Future
Looking ahead, it is difficult to predict exactly how gold prices will behave. Much will depend on global economic conditions, including inflation rates, central bank policies, and geopolitical developments. However, given the current trends, it seems likely that gold prices may continue to rise, at least in the short term.
For now, gold remains a valuable and sought-after commodity in Bangladesh, with prices reaching unprecedented levels. As the country grapples with these changes, consumers and businesses alike will need to adapt to this new reality in the gold market.
Conclusion
The record-breaking surge in gold prices in Bangladesh is a reflection of both local and global economic conditions. With 22-carat gold now priced at Tk 122,985 per bhori, the highest ever in the nation’s history, the impact on consumers and the economy is significant. As the situation continues to evolve, all eyes will be on how these trends develop in the coming months.