Gold prices in the domestic market fell by as much as Tk 7,640 per bhori at around 10:00 am today, Friday, following a drop in prices in the global market. Silver prices also declined by Tk 175 per bhori.
Gold prices were highly volatile last week. Most recently, prices rose by Tk 5,424 per bhori on Tuesday. The day before, on Monday, prices fell by Tk 12,014 in two phases, in the morning and in the afternoon.
Earlier on 29 January, gold prices jumped by a record Tk 16,213 per bhori, pushing the price of top-grade gold to Tk 286,000 per bhori—the highest ever recorded in the country.
The Bangladesh Jewellers’ Association announced the price cut this morning. According to the revised rates, the price of 22-carat gold has fallen by Tk 7,640 to Tk 254,450 per bhori. The price of 21-carat gold has dropped by Tk 7,290 to Tk 242,903 per bhori.
The price of 18-carat gold has fallen by Tk 6,241 per bhori, bringing it down to Tk 208,202. Meanwhile, the price of sanatani (traditional) gold has declined by Tk 5,074 per bhori to Tk 170,411.
Until Thursday, gold was selling at Tk 262,090 per bhori for 22-carat, Tk 250,193 for 21-carat, Tk 214,443 for 18-carat, and Tk 175,485 for traditional-method gold. In addition to these prices, buyers must pay five per cent VAT and six per cent making charges when purchasing jewellery.
Silver prices have also declined alongside gold. Today, the price of 22-carat silver has fallen by Tk 175 per bhori to Tk 6,357. Until yesterday, silver was priced at Tk 6,532 per bhori.
Gold prices came under downward pressure last week due to a policy decision in the US market. The Chicago Mercantile Exchange (CME) increased margin requirements for trading in precious metals, including gold.
Higher margins mean traders have to lock up more funds, prompting many to sell gold, which in turn drives prices down. The increase in margin requirements at the CME has added pressure to prices.
Investors are also closely watching the stance of Kevin Warsh, the potential new chair of the US Federal Reserve, on interest rate cuts. If the likelihood of a rate cut appears uncertain, investor interest in assets such as gold can temporarily weaken, contributing further to the price decline.
In the global market, gold was trading at USD 4,867 per ounce yesterday. At around 11:45 am today, at the time of filing this report, spot gold prices edged up slightly to USD 4,874 per ounce.