Record Increase in Gold Prices in Global Market Leads to Surge in Local Market
Record Increase in Gold Prices in Global Market Leads to Surge in Bangladesh Gold Market
In the wake of a record surge in gold prices globally, the local market has also witnessed a substantial increase in the value of this precious metal. With gold prices hitting an all-time high of 2,217 Bangladeshi Taka per bhori (approximately 22 karats), the cost of gold has soared to new heights. This surge translates to a staggering 112,908 Taka per bhori increase for high-quality gold, indicating a significant shift in market dynamics.
The Bangladesh Jewellers Association (BAJUS) announced today the impending price hike in gold, effective from tomorrow, Thursday. This decision comes in response to the escalating global trends impacting the local market. According to the insights provided by Reuters, the surge in gold prices can be attributed primarily to two key factors. Firstly, there are anticipations surrounding adjustments in the monetary policies of the US Federal Reserve. Such expectations often have a significant impact on the value of gold, as investors closely monitor these policy changes to gauge economic stability and adjust their investment strategies accordingly. Additionally, increasing geopolitical tensions have driven investors towards safe-haven assets such as gold, seeking security amid uncertainty. Heightened uncertainties and geopolitical risks tend to drive up demand for gold, as it is perceived as a store of value and a hedge against economic and political instability. These combined factors contribute to the current upward trajectory in gold prices, reflecting the complex interplay between economic policies and global geopolitical dynamics.
On Tuesday, gold spot prices surged to $2,141 per ounce, marking a significant increase. However, shortly after, prices retreated to $2,130 per ounce. BAJUS has indicated that due to the rising prices of raw gold in the local market, new price adjustments have become imperative. Effective tomorrow, the price for 22 karat gold will witness a substantial increase to 2,217 Taka per bhori, while 21 karat gold will be sold at 1,775 Taka per bhori.
Additionally, the price for 18 karat gold has been revised upwards by 808 Taka, with the new rate set at 92,379 Taka per bhori. Similarly, traditional gold, valued at 21,516 Taka per bhori, will see an increase of 99 Taka. Nevertheless, the price of silver has remained stable and unchanged amidst these fluctuations.
Prior to the adjustment, gold prices in the local market stood at 1,010,691 Taka per bhori for 22 karat gold, 1,005,676 Taka for 21 karat gold, 908,571 Taka for 18 karat gold, and 754,466 Taka for traditional gold.
In 2023, the local market witnessed successive increases in gold prices, resulting in a significant jump in the cost of gold. As a result, the price of high-quality gold per bhori surged to 1 million Taka.
An analysis of BAJUS data reveals that in 2023, gold prices fluctuated 29 times, with 11 instances of price reductions and 18 instances of price hikes. The year commenced with gold priced at 884,413 Taka per bhori for 22 karat gold, reaching a peak on July 21st when prices surpassed the 1 million Taka mark for the first time.
The volatile global economic landscape, coupled with geopolitical tensions, continues to exert pressure on gold prices, influencing local markets. With gold prices reaching unprecedented levels, consumers brace for the impact of these fluctuations on their purchasing power and investment decisions.
As the global economy navigates through uncertain times, gold remains a steadfast investment option, offering stability and security amidst turbulent market conditions. As such, stakeholders closely monitor gold prices, anticipating further developments that may shape market dynamics in the days to come.
In conclusion, the surge in gold prices underscores the intricate interplay between global economic forces and local market dynamics, shaping consumer behavior and investment strategies in the face of uncertainty. The evolving landscape calls for vigilance and adaptability as stakeholders navigate through volatile market conditions, seeking to optimize their investment portfolios in response to changing trends and emerging opportunities.
