Gold Jewelry Prices Drop by BDT 3,266 Per Bhori in Bangladesh
The price of gold jewelry in the Bangladeshi market has decreased by BDT 3,266 per bhori today, Monday. This price reduction follows a price increase that occurred last Friday, marking the first adjustment after three days of higher rates. The Bangladesh Jewelers Association (BAJUS) implemented the new pricing structure at 12:15 PM today, as announced in a press release.
Under the revised rates, the price of high-quality 22-karat gold has fallen to BDT 225,290 per bhori (11.664 grams). The price for 21-karat gold is now BDT 215,142 per bhori, and 18-karat gold is priced at BDT 184,758 per bhori. Additionally, gold from traditional methods has seen its price reduced to BDT 150,932 per bhori.
Due to the inclusion of VAT within the gold price, consumers will no longer be charged separate VAT on gold jewelry. The government reduced the VAT on gold in the budget for the 2026-27 fiscal year, setting a fixed VAT of BDT 2,500 per bhori, a change from the previous 5% VAT on the total price. While the primary driver for gold price increases is typically the global market, BAJUS leaders stated that the current price adjustments are due to rising rates of refined gold in the local market.
The recent fluctuations in gold prices in Bangladesh, attributed by the Jewelers Association to local refined gold rates, reflect the complex interplay between global commodity markets and domestic economic policy. The reduction in VAT for gold jewelry, shifting from a percentage-based tax to a fixed amount, aims to stimulate consumer demand and potentially curb illicit trade by making official purchases more attractive. This policy shift, coupled with price volatility, suggests a government effort to balance revenue generation with market accessibility. Over the next decade, as digital currencies and alternative investment vehicles evolve, the traditional role of gold as a primary store of value may be challenged, prompting further policy adaptations to manage its market dynamics and consumer appeal.
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