Gold price gallops, rises by Tk 990 per 'bhori'

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Monira Munni
Bangladesh Jewellers Samity (BJS) increased the price of gold by Tk 990 per 'bhori' last week following higher demands for the bullion triggered by price hike in the international market.
The price of gold has soared to a new high of nearly $1104.25 an ounce in the global market amid speculation that it could hit $2,000 in the next decade.
Gold prices in the local market have hit a new high with the 22-carat guinea gold selling at Tk 33,884 and 21-carat at Tk 32,367 and 18-carat at Tk 28,868 a 'bhori' indicating a dull business of the precious metal in the country.
Only two months ago the 18-carat gold sold at Tk 27,993, 21-carat at Tk 31,376 and 22-carat at Tk 32,892 a 'bhori'.
"Prices of the bullion have increased in the domestic market after its international prices also hit record highs," MA Wadud Khan, president of BJA said.
"The gold prices are rising continuously as many countries, especially the Gulf States, have resorted to holding reserves of the precious item instead of US dollar," the BJS president said.
The high gold prices in the domestic market have led to a dull business over the last few years, he added.
Bangladesh market always responds slowly to the international market, he said.
"In India, the jewellers adjust price every day, which is not the practice here and we adopt a 'wait and see' approach in expectation that market will become stable," BJS officials said.
The BJS revised gold price 12 times last year and the last one was on December 24, when the prices fell.
The price hike is expected to have a negative impact on gold sales in the wedding season, he feared.
There is no statistics of gold demand in the country but on an average 3,000-4,000 'bhoris' of gold enter the country every day in legal way, they added.
Gold, traditionally viewed as a safe investment, has enjoyed an incredible run over the past decade. It has become one of the world's best performing investments, rising from a low of $252 per ounce in 1999.
Local industry people said gold is always seen as a safeguard against any kind of economic uncertainty. Many choose to hold reserves of gold as an alternative to the US dollar, they said.
The jewellers have recorded a significant fall in their sales because of the high rates. Any further gold price hike would just damage the jewellery business, they pointed out.
According to sources, the rising oil price and the appreciation of the US dollar have contributed to the gold price hike.