Those interested in gold are receiving bad news almost daily. Over the past three days alone, the price of gold has risen by Tk 28,810 per bhori. Of this, a record Tk 16,000 increase came just yesterday (Thursday).
As a result, the price of one bhori of high-quality, 22-carat gold has reached Tk 286,000— the highest ever in the country’s history.
Rising global geopolitical instability has driven gold prices sharply higher in the international market, and the Bangladesh Jewellers Association has adjusted local prices accordingly.
Gold is always imported at international market rates—an argument often cited for higher domestic prices—and now the increase has become even steeper. In addition, making one bhori of gold jewellery requires paying an extra 11 per cent in VAT and making charges. This pushes the total cost to around Tk 317,000.
In times of uncertainty, investors usually view gold and other precious metals as a “safe haven.” As expected, prices have surged accordingly. Last Monday, gold prices crossed USD 5,000 per ounce for the first time in history.
A visit to several jewellery markets in Dhaka, Chattogram and Sylhet shows that sales have been sluggish for quite some time due to persistently high prices. However, with prices rising abnormally over the past few days, customer footfall has increased at larger shops.
Some buyers are purchasing gold jewellery for investment purposes as well. Amid price volatility, many shop owners are no longer taking new orders for custom-made jewellery and are instead selling items already in stock.
Several jewellers say business has slowed significantly as gold has moved beyond the reach of the middle class. If prices rise further, many shops may be forced to shut down. The surge in prices has also raised security concerns among traders.
Gold prices are closely linked to global economic trends. Economic uncertainty generally leads to higher gold prices. Renewed geopolitical instability—ranging from protests in Iran to attempts to oust Venezuelan President Nicolás Maduro—has driven prices upward over the past month.
In times of uncertainty, investors usually view gold and other precious metals as a “safe haven.” As expected, prices have surged accordingly. Last Monday, gold prices crossed USD 5,000 per ounce for the first time in history.
Gold prices in the global market are rising faster than earlier forecasts. Investment bank Goldman Sachs had projected last year that gold could reach USD 5,400 per ounce by December 2026. Yet yesterday, prices climbed to USD 5,556 per ounce.
In a recent annual forecast survey by the London Bullion Market Association (LBMA), analysts suggested that gold prices could reach as high as USD 7,150 per ounce in 2026. If that forecast comes true, the price of gold in Bangladesh could exceed Tk 350,000 per bhori.
Former general secretary of the Jewellers Association, Dewan Aminul Islam, told Prothom Alo that gold prices could rise further. “As long as tensions between Iran and the United States persist, that risk will remain,” he said.
Price Up by 1,682 Times
During Bangladesh’s Liberation War, the price of gold was Tk 170 per bhori. Over the past five and a half decades, the price has increased 1,682 times. Currently, one bhori of 22-carat gold costs Tk 286,001.
According to the Jewellers Association, the price of one bhori of 22-carat gold was Tk 6,900 in 2000. It doubled within the next five years. By 2010, the price had tripled to Tk 42,165. Prices did not rise significantly until 2015, but over the next five years, they increased by Tk 26,852 per bhori.
After the COVID-19 pandemic, gold prices rose rapidly. On 21 July 2023, the price of gold reached Tk 100,000 per bhori. It crossed Tk 150,000 in February last year and hit the Tk 200,000 milestone in October.
On 22 January, prices crossed Tk 250,000 per bhori. This month alone, prices have increased by Tk 61,819.
Rising Investment in Gold
There are 120 jewellery establishments in Dhaka’s Baitul Mokarram market. Visiting the market at around 10:15am yesterday—two hours after the latest price hike—revealed that one or two customers were browsing jewellery at a few large shops. Smaller and mid-sized shops, however, were largely empty.
Babul Dutta, proprietor of Lily Jewellers, said customer visits have increased over the past four to five days due to continuous price hikes. “Some people are buying gold jewellery for investment,” he said. “But gold has long moved beyond the reach of middleclass people. If prices don’t fall in the coming days, only the wealthy will be able to afford gold jewellery.”
Outside Dhaka
A Prothom Alo correspondent in Chattogram reports that no customers were seen yesterday afternoon at jewellery shops in areas such as Bipanibitan, Mimi Supermarket, Dewan Bazar and Hazari Lane. Most shop employees were passing idle time. Traders said the situation has persisted for three months.
Mithun Dhar, owner of Priyatama Jewellers in the CEPZ area, said wealthy families used to order five bhori of gold jewellery for weddings. “Now they’re managing with two or three bhori. Lower-income families are mostly settling for a nose ring. As a result, business has gone into loss,” he said.
The Prothom Alo Sylhet correspondent reports that Nihar Market in Zindabazar is one of the city’s main jewellery hubs. During a one-hour visit starting at 11:30am yesterday, no customers were seen. Many employees were busy cleaning their shops.
Roni Chakraborty, owner of Roni Jewellers, said he opens his shop in the morning and closes it at night, often without making a single sale. “It’s becoming difficult to pay shop rent and staff salaries,” he said.
Bijoy Karmakar, a gold trader at Sylhet’s Mahajanpatti, said rising gold prices have put jewellery artisans in a dire situation. “There have been virtually no new orders for nearly a month,” he said. With silver prices also rising, the situation has become even more complicated.
Higher Prices in Bangladesh
Gold prices in Bangladesh have always been higher than in the global market, and the gap is widening as prices rise. Currently, gold in Bangladesh costs Tk 19,500 more per bhori than in neighbouring India.
According to prices listed on the website of the Bullion and Jewellers Association of India, the retail price of one bhori of 22-carat gold in India yesterday was 249,200 rupees, equivalent to Tk 266,476. This means gold is Tk 19,525 more expensive per bhori in Bangladesh.
Asked why prices are higher domestically, Jewellers Association President Enamul Haque Khan told Prothom Alo that there is no opportunity to buy gold locally at global market prices.
“Moreover, customers are reluctant to pay making charges for jewellery, which is why prices are somewhat higher than in neighbouring countries,” he said. He added that gold jewellery currently carries a 5 per cent VAT. Reducing this and instead imposing a fixed amount per bhori or a 15 per cent VAT on value addition could offer some relief to customers.