The jewellers have cut gold prices by Tk 2,520 a bhori for the domestic market thanks to a drop in the rates of pure gold in the local market.

From tomorrow, the price of each bhori or 11.664 grams of 22-carat gold ornaments will be Tk 136,188, down from today's Tk 138,708.

The standing committee on pricing and price monitoring of Bangladesh Jewellers Association (Bajus) took the decision at a meeting in Dhaka today, the association said in a statement.

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

In Bangladesh, the annual demand for gold stands in between 20 and 40 tonnes.

About 80 percent of the demand for the precious metal in Bangladesh is met through smuggled gold.