Gold hits record Tk 106,376 a bhori

The country jewellery makers today hiked 22-carat gold prices by Tk 1,750 and from tomorrow the new price will be Tk 106,376 a bhori, a historic high.

The new price is 1.67 percent higher than the previous all-time high of Tk 104,626 per bhori (11.664 grammes) recorded on November 5.

The standing committee on pricing and price monitoring of Bangladesh Jewellers Association (Bajus) took the decision of the gold price hike in a meeting today, according to a statement of the association.

In July, the gold price crossed the Tk 100,000-mark for the first time in Bangladesh.

Gold prices have been rising for more than a year influenced by hikes in the international market and volatility in the supply in the domestic market.

Although Bangladesh does not import any significant quantity of gold, its prices are almost linked with international trends.

In Bangladesh, the annual demand for gold stood between 20 tonnes and 40 tonnes. About 80 percent of the demand is met through smuggled gold.

In August last year, the central bank made it mandatory to keep a 100 percent margin on LC (letter of credit) opening for gold with a view to discouraging imports and saving foreign currencies, whose reserve has declined by about 25 percent in the past 18 months.