Gold Prices Surge in Bangladesh, Adding Over $4,000 Per Bhori
Gold prices in Bangladesh have seen a significant increase, with the price per bhori (11.664 grams) rising by a maximum of 4,374 Taka on Friday. This follows a previous increase of 2,116 Taka on Thursday, bringing the total two-day surge to 6,590 Taka per bhori. The Bangladesh Jewellers Association implemented these new prices starting at 10 AM on Friday. Silver prices also increased, with a rise of 117 Taka per bhori, setting the price for 22-carat silver at 4,899 Taka. According to the new rates, 22-carat gold now costs 225,556 Taka per bhori, 21-carat gold is priced at 218,292 Taka, and 18-carat gold is at 187,440 Taka. Traditional gold is now valued at 153,148 Taka per bhori. The price increases compared to Thursday are 4,374 Taka for 22-carat, 4,199 Taka for 21-carat, 3,558 Taka for 18-carat, and 2,916 Taka for traditional gold. Due to VAT being included in the gold price, consumers will not face separate VAT charges on gold jewelry. The proposed budget for the 2026-27 fiscal year includes a reduction in VAT on gold, setting it at 2,500 Taka per bhori, down from the previous 5% of the total price. The primary driver for this domestic price hike is the rising global gold market. As of noon Bangladesh time, the price of gold per ounce on the global spot market had increased by 1.43% to $4,171. Jewellers Association leaders attributed the price adjustment to increased rates of raw gold in the local market.
The recent sharp increases in gold prices in Bangladesh, driven by global market trends and local adjustments, highlight the commodity's role as both an investment and a store of value. The government's proposed VAT reduction on gold jewelry, while intended to ease consumer burden and potentially stimulate the market, introduces a dynamic where tax policy directly influences consumer purchasing power and industry revenue. This move, coupled with fluctuations in international prices, underscores the sensitivity of the domestic market to external economic forces and regulatory changes. Future policy decisions will need to balance the need for revenue generation with the goal of maintaining market stability and affordability for consumers, especially in the context of evolving global economic conditions and the increasing importance of precious metals in diversified investment portfolios over the next decade.
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