‘Golden fever’ grips Bangladesh as prices soar

Mostly used as jewelry, the high price has dipped the demand for the precious metal. Gold jewelers now spend most of their time in the day doing nothing. Their sales have halved compared with last year. 

At the end of last year, the price of 22-carat gold was Tk 138,288 per bhori. Nine months later, the cost rose to Tk 195,384, setting a new historic record for the price. The previous record was made on September 23, when the price of 22-carat gold reached Tk 194,859.

The latest gold price hike of Tk 2,415 per bhori became effective on Tuesday. The gold price increased by TK 21,000 per bhori in September alone.

The Bangladesh Jewelers’ Association (BAJUS) regulates gold prices in the country.

"Gold prices have been rising uncontrollably for decades. In 2000, the price of one bhori of gold was below Tk 10,000," said Gobinda Halder, a gold trader in Tantibazar. “Relentless price hikes halved customers,” said Gobinda.

Buyers now mostly come to jewelers to sell gold or take a loan against the precious metal.

The BAJUS describes the event of gold price change as a price adjustment, which actually saw the price rise 41 times until September this year. The gold price, on the other hand, dropped 17 times, with the latest fall in the price coming on September 27. Last year, the gold price was adjusted 62 times, including 35 hikes. 

Historical data from BAJUS shows that in 2000, the price of 22-carat gold per bhori was Tk 6,900. By 2010, it had risen to Tk 42,165, and by 2020, it reached Tk 59,195.

The gold price increased 229 per cent over the last five years. In the past decade, the price has risen by 361 percent. The gold price has gone up by a whopping 2719 per cent over the last 25 years.

“Gold price increases depending on the bullion market,” said Masudur Rahman, chairman of BAJUS’s Price Fixing and Monitoring Standing Committee.

The Russia-Ukraine war, dollar depreciation and increased reserves in China’s central bank have influenced the price hike, he said.

According to the World Gold Council, the spot price of gold currently stands at $3,742 per ounce, which is 2.43 bhori. The current per bhori price of gold in the international market is $1,540 or Tk 187,880. The price is aligned with the domestic price, given associated costs.

In January 2025, the price of gold was $2,796 per ounce, which has increased by nearly $1,000 in nine months. The council forecasts that prices could exceed $4,000 per ounce this year.

“Gold sales have already dropped 55 percent in nine months and are likely to decline further if prices continue rising,” said Masud.

Gold sales also dropped in India by 40 percent and nearly 20 per cent in Dubai, he said.

Gifts of gold ornaments are indispensable on many social occasions, mainly at weddings. There were days when close relatives welcomed new members of their families with a gift of a gold ornament, regardless of the newborn's gender identity.

The failure to provide a gold ornament became the reason for disputes in many weddings. Sometimes, weddings were called off.

But the situation changed, particularly at a time when inflation is eating away at savings. A simple ring or earring now costs Tk 100,000, about a third of the average annual income per capita. “I wedded my daughter with her mother’s jewelry,” said Anwar Hossain, a private-sector employee.

An average middle-class wedding has a budget of Tk 500,000.

"The gold market fluctuates like the stock market," said Adiba Afroz, who had gone to the Bashundhara Shopping Mall to buy gold.

The leaders of BAJUS defended the price volatility, saying that they follow the international market.

Despite rising prices, the World Gold Council said, global gold reserves remain unchanged, indicating the overall value of the metal as an investment.

Globally, the council said in 2024, 40 per cent of the gold reserves are considered investment, 33 percent of the gold stock was used as jewelry, while central banks stocked 20 per cent of the gold. About 7 percent of the global gold reserve is used in chip manufacturing.

Global annual gold demand rose to 4,974 tonnes in 2024, valued at $600 billion. Bangladesh lacks official data on gold demand, reserves, or its per capita use, reports UNB. 

About 4.4 million people in Bangladesh are directly or indirectly involved in the gold trade.