The price of gold in Bangladesh is poised to surpass all previous records as the jewellers in the country have decided to increase its rates with effect from today.

Each bhori (11.664 grams) of 22-carat gold will now cost Tk 117,573, up from the previous rate of Tk 115,824.

The Bangladesh Jewellers' Association said it decided to raise the rate due to an increase in the price of pure gold in the local market, according to a press release.

Since March 22 of this year, gold has been sold at Tk 114,074 per bhori.

The country witnessed the price of gold to rise above Tk 1 lakh per bhori for the first time on July 20 last year.

Bangladesh does not import a significant quantity of gold. But the price of the precious metal in the country is invariably linked with international fluctuations, along with volatility in the domestic market.

With an annual demand of 20 to 40 tonnes, smuggling meets 80 percent of the country's demand for gold.