Turbulence Grips Bangladesh Gold Market

Bangladesh’s gold market is currently experiencing unprecedented volatility, with prices swinging multiple times in a single day. On Saturday morning, the price of gold per tola (11.664 grams) fell by BDT 16,000, only to rise again in the afternoon. According to the latest rates set by the Bangladesh Jewellers’ Samity (BAJUS), 22-carat gold is currently priced at BDT 259,699 per tola. Subsequent adjustments saw prices rise once more, followed by two reductions. As of Monday, 2 February, 22-carat gold is officially being sold at BDT 251,184 per tola.

Last Thursday, Bangladesh recorded an all-time high for gold prices, when 22-carat gold rose by BDT 16,213 to BDT 286,000 per tola. In comparison, the same quantity of gold was priced at just BDT 135,000 a year ago—a staggering annual increase of BDT 151,000. Including a 5% VAT and 3–6% labour charges, purchasing a tola of high-quality gold now costs nearly BDT 300,000 legally.

The steep price surge has placed gold well beyond the reach of lower- and middle-income buyers, leaving both sellers and buyers frustrated. Jewellery shops report minimal sales, with many transactions effectively halted.

BAJUS traders attribute the price rise to international market fluctuations. Economists note that when economic uncertainty looms, investors turn to gold as a safe haven, driving up domestic prices. Global events influencing the market include fears of a U.S. attack on Iran, stock market volatility, declining bank interest rates, the Ukraine-Russia conflict, the U.S.–China trade war, and the recent appointment of the Federal Reserve Chairman in the United States. Analysts believe that any escalation in geopolitical tensions could push gold prices higher.

Local factors also contribute: stricter regulations on importing gold under the baggage rule have increased domestic prices. Dr. Taufiq Ahmed Chowdhury, former Director General of the Bangladesh Institute of Bank Management, notes that a weaker dollar and declining global economic conditions are key drivers of the current price surge.

Bangladesh markets sell gold in four grades: 22-carat (91.6% purity), 21-carat (87.5%), 18-carat (75%), and traditional melted gold (approximately 60%).

Despite a yearly demand of around 21 tonnes, legal imports remain low, increasing reliance on smuggled gold. High prices have led buyers to prefer alternatives such as city gold or gold-plated jewellery, particularly among middle-income groups.

According to BAJUS’s former vice president M.A. Hannan Azad, the market is in crisis. Many of BAJUS’s 40,000 members have ceased business operations, while even the traditionally busy Ramadan and Eid seasons see few buyers. Jewellery shops in major markets such as Baitul Mokarram remain largely empty, with only sporadic customers visiting larger outlets.

With global and local pressures mounting, Bangladesh’s gold market faces a period of sustained instability, leaving both traders and consumers navigating unprecedented uncertainty.