Gold prices fall less than 24 hours after hitting all-time high

Local jewellery makers cut gold prices by Tk 1,749 a bhori to Tk 110,691 less than 24 hours after raising its price to an all-time high of Tk 112,440 for 22-carat gold.

On January 17, Bangladesh Jewellers' Association (Bajus) increased the price of each 11.664 grammes or 1 bhori of gold to the historic high level from the earlier price of Tk 111,041.

The price of pure gold rose yesterday in the local market, but it fell today, according to Bajus.

The standing committee on pricing and price monitoring of Bajus held one meeting each yesterday and today and took the decisions to raise and cut prices respectively of the precious metals, including gold.

In July last year, the price of gold crossed the Tk 100,000-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.