Gold price hits new record in local market

The price of gold has hit Tk 112,440 per bhori (11.664 grammes), the highest in the history of Bangladesh, as the Bangladesh Jewellers' Association (Bajus) decided to hike prices from tomorrow.

The standing committee on pricing and price monitoring of Bajus took the decision at a meeting yesterday, citing a rise in pure gold prices in the local market in a statement.

The previous price of each bhori of 22-carat gold ornaments was Tk 1.11 lakh.

In July last year, the price of gold crossed the Tk 1,00,000-mark for the first time in Bangladesh.

Gold prices also hit a new milestone on November 29 last year, when Bajus set the price per bhori at more than Tk 1.09 lakh.

Although Bangladesh does not import a significant quantity of gold, prices are almost always linked with international fluctuations alongside volatility in the domestic market.

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

In August last year, the Bangladesh Bank made it mandatory to keep a 100 percent margin on letters of credit for gold with a view to discouraging imports and saving foreign currency.