Gold reaches new high
21-carat sells at Tk 20,237, 22-carat at Tk 21,228 a bhori
Gold prices in local market have hit a new high with guinea (21-carat) selling at Tk 20,237 and 22-carat at Tk 21,228 a bhori, indicating a dull business of the precious metal during the coming Eid festival.
21-carat gold was selling at Tk 19,700 while 22-carat at Tk 20,645 a bhori (11.66 grams) only one week ago.
Bangladesh Jewellery Manufacturers and Exporters Association (BJMEA) on Tuesday re-fixed the new prices for local market in line with the surging gold prices in the international market.
"Price of the precious metal soared in the domestic market, as its price also experienced record high in the international market," Anwar Hossain, president of BJMEA, said yesterday.
Gold struck its highest price for 27 years as it surged to 738.60 dollars an ounce in the international market last week.
Local industry insiders said gold is always seen as a safeguard against any kind of economic uncertainty. Many reserve gold as an alternative to US dollar, they added.
"The gold prices have been witnessing continuous rise since the 9/11 incident as many countries especially Gulf states have resorted to gold reserves instead of US dollars," said Anwar.
BJMEA leaders said high domestic prices have resulted in dull business during the last few years in the domestic gold market.
"But BJMEA has to adjust the prices as a huge amount gold is smuggled into neighbouring countries due to low prices in Bangladesh," BJMEA president said.
BJMEA sources said Bangladesh has about $2 billion informal trade with India alone and most of the payments are now being made through gold instead of US dollars due to scarcity of dollar in kerb market. Fluctuation of dollar value also affects gold price in the local market, the sources added.
The country has about 5,000 jewellery shops, which sell readymade ornaments and about 10,000 shops that make ornaments as per customers' choice.
Total workers involved with jewellery industry decreased to 1.5 million from 2 million in 2002-03 due to volatile domestic market.
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