Gold prices have suddenly begun to decline in the global market. On Friday, the precious metal’s value fell by USD 434.45 per ounce, impacting domestic prices as well.
Just last week, gold prices surpassed USD 5,000 per ounce for the first time in history, even exceeding USD 5,500 briefly. Now, prices have dropped to USD 4,893 per ounce, a fall of over USD 600 in just a few days.
Reports indicate that the decline began after there were signs of relative political stability in the United States. While global tensions remain higher than the same period last year, the initial panic has eased, reports BBC.
Last week, the surge above USD 5,000 was largely driven by uncertainty over whom Donald Trump would appoint as the Federal Reserve chairman.
Investors feared he might select someone who would yield to political pressure to lower interest rates, potentially weakening the dollar and increasing inflation. Seeking protection from these risks, investors flocked to gold.
However, news that Trump may nominate Kevin Warsh, seen as a relatively “safe” choice compared to other candidates, changed the market sentiment. Consequently, the prices of gold, silver, and platinum fell simultaneously.
Despite the price drop, precious metals remain significantly pricier than the same period last year. Ongoing geopolitical tensions, existing and potential new tariffs, and conflicts across the globe continue to make gold and silver attractive as “safe-haven” assets.
According to Nicholas Frapel, global head of Institutional Markets at ABC Refinery, “Gold is unlike bonds—it isn’t tied to someone else’s liability, nor does it depend on a company’s financial stability like stocks. In uncertain global conditions, gold remains an effective and diversified investment.”
Friday’s decline demonstrates how quickly commodity prices, including gold, can both rise and fall.
Gold is not easily available
Scarcity has always increased human attraction to gold. According to the World Gold Council, around 216,265 tonnes of gold have been mined to date—enough to fill three to four Olympic-sized swimming pools.
Most of this has been mined since 1950, when mining technology advanced and new reserves were discovered.
The US Geological Survey estimates that approximately 64,000 tonnes of gold remain underground. While supply is expected to stabilise in the coming years, rising global uncertainty could push prices higher.
Domestic market also sees a drop
Following the global decline, gold prices have started falling in Bangladesh as well. While prices were nearing Tk 300,000 per bhori, the Bangladesh Jewellers’ Association announced a price cut on Friday.
Today, Saturday morning, the price fell by Tk 15,746 per bhori for 22-carat gold, bringing it to Tk 255,617 per bhori.
As a result, 21-carat and 18-carat gold prices also fell by Tk 14,988 and Tk 12,888 per bhori respectively, making their prices Tk 244,011 and Tk 209,136 per bhori. Meanwhile, traditional gold price fell by Tk 10,964 reaching Tk 171,869 per bhori.