Gold shines through 2025 amid price volatility

If there were a "metal of the year" award, gold would be a strong contender, maintaining an exceptional run even on the final trading day of 2025.

Businesspeople said the retail gold market in Bangladesh has remained unstable over the past few months, driven by fluctuating global prices, steadily rising costs of pure gold, and broader economic uncertainty.

An analysis of December data shows that retail gold prices changed 12 times during the month.

On December 1, gold was priced at Tk 2.12 lakh per bhori, rising to Tk 2.24 lakh by December 31.

On December 29, the price stood at Tk 2,26,923 per bhori before falling by Tk 2,741, or about 1.21 percent, to Tk 224,182 on December 31.

A day earlier, on December 28, prices were set to hit a new high after the Bangladesh Jewellers Association (Bajus) raised rates, citing higher prices in the local bullion market.

Dewan Aminul Islam Shahin, chairman of Bajus' Standing Committee on Pricing and Price Monitoring, said Bangladesh's retail gold market has been highly volatile in recent months, largely due to swings in global prices and rising costs of pure gold.

"International issues such as geopolitical tensions and conflicts have a direct impact on our local market. As jewellers, we try to maintain consistent and balanced prices, but rapid fluctuations often lead to losses when prices fall after purchase," he said.

He added that many ordinary- and middle-income buyers are now unable to afford gold ornaments, even for small items such as nose pins.

Shahin also noted that while gold remains both a symbol of beauty and a store of value, current prices are discouraging new buyers.

"Those who invested earlier are benefiting, but we hope prices will become more affordable so customers can continue purchasing. That would also allow us to increase production and improve sales," he said.

Globally, gold prices surged to a record high in early Asian trading on Friday, supported by safe-haven demand and expectations of further interest rate cuts by the US Federal Reserve, according to Reuters.

Spot gold rose 0.5 percent to $4,501.44 per ounce by 0209 GMT, after touching a record high of $4,530.60 earlier in the session. US gold futures for February delivery settled 1.9 percent higher at $4,469.40 per ounce.

Although Bangladesh does not import significant volumes of gold, domestic prices remain closely aligned with global trends. Under the Gold Policy 2018, annual domestic demand is estimated at between 20 and 40 tonnes.

Gold first crossed Tk 50,000 per bhori in January 2018. Five years later, in July 2023, it reached Tk 100,000. Prices climbed further to Tk 150,000 in February 2025 before surging past Tk 200,000 per bhori later in the year.