Gold price hits new high

Jewellers yesterday raised the price of 22-carat gold to Tk 104,626 per bhori, a new high.

The new rate, up 1.7 percent from the previous high, will come into effect from today, the Bangladesh Jewellers Association (Bajus) said in a press release.

The rate was increased owing to a spike in pure gold prices, it said.

The previous high was hit on October 26 when the association set the price of the precious metal at Tk 102,876 a bhori (11.664 grammes).

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

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.

"The rate at which the price of gold is going up is quite worrying because sales are decreasing day by day," said Dewan Aminul Islam, vice-president of the Bajus.

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

Globally, spot gold rose 0.4 percent to $1,994.28 per ounce on November 2, after hitting a session high of $2,003.69, according to a Reuters article. It was higher than the $1,650 seen in November last year but lower than the $2,050 hit in May this year.

The price is expected to rise owing to the intensification of conflict in the Middle East.

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 discoursing imports and saving foreign currencies, whose reserve has declined by about 25 percent in the past 18 months.