Gold will be slightly cheaper from tomorrow as the Bangladesh Jewellers' Association (Bajus) today decided to cut its prices.

The association cut gold prices by 1.5 percent to Tk 111,158 a bhori (11.664 grammes) from the existing Tk 112,907 a bhori, the highest in the history of Bangladesh. 

The reduced rate will be effective from tomorrow, the Bajus said in a statement.

The previous price of each bhori of 22-carat gold ornaments was Tk 1.1 lakh.

Bajus said prices of pure gold have declined in the local market.

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

Gold prices have risen significantly over the last couple of years, influenced by hikes in the international market and volatility in its 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 stands in between 20 tonnes and 40 tonnes.