September 23, 2025
DHAKA – Gold prices in Bangladesh have been climbing relentlessly, setting new records almost every week. In September alone, the price of 22-carat gold rose by over Tk 13,000 per bhori (11.664 grams), reaching Tk 189,306 on September 21, according to the Bangladesh Jewellers Association (Bajus).
Despite the onset of the festive season, including Durga Puja, and the upcoming winter months, which is traditionally a peak time for jewellery sales, traders report a sharp fall in customer demand. Some shops in Dhaka say sales have halved in recent weeks. “Customer turnout has dropped significantly, by as much as 45 percent, possibly more,” said Masudur Rahman, vice-president and spokesperson of Bajus.
GLOBAL SURGE FUELS LOCAL VOLATILITY
Industry insiders attribute the surge primarily to the international bullion market, where prices have been hitting fresh highs.
Spot gold traded at $3,691.53 per ounce on Monday, just shy of the record $3,707.40 touched earlier in the week, Reuters reported.
Analysts say dovish signals from the US Federal Reserve, along with continued central bank purchases, are fuelling investor demand for the safe-haven asset.
Tim Waterer, chief market analyst at KCM Trade, noted, “The combination of a dovish Fed and constant central bank buying is keeping momentum on the side of gold.”
With the Fed cutting interest rates by 25 basis points last week and further easing still on the cards, investors are bracing for fresh highs should US inflation data remain supportive.
WEAK TAKA, RESTRICTED IMPORTS
The sharp depreciation of the taka in recent years has also inflated the local cost of gold.
“Previously, a dollar was available at Tk 80 to Tk 85; today, it’s not obtainable below Tk 123 to Tk 124,” Rahman said. “This depreciation has directly contributed to inflation and the rising cost of goods, including gold.”
Legal imports remain limited, leaving the market heavily reliant on recycled gold and informal inflows.
A government gold policy introduced in 2018 sought to curb smuggling and ensure transparency. The following year, the Bangladesh Bank authorised 18 companies and one bank to import gold, with the licences valid until March this year. Yet, between 2020 and 2021, only 160 kilogrammes of the 306.76 kilogrammes of approved imports were actually brought in.
Far larger quantities entered under baggage rules. Customs data shows nearly 99,791 kilogrammes of gold were brought in by passengers between 2021 and 2022, generating Tk 1,714 crore in revenue. But much of this was subsequently smuggled out to India, according to the NBR’s Customs Intelligence and Investigation Directorate.
In 2023–24, about 45,600 kilogrammes of gold came into the country. Still, insiders say this falls well short of demand, estimated at 20–40 tonnes annually, of which around 80 percent is met through informal channels.
The long-term trajectory of gold in Bangladesh has been one of steep increases. During the country’s War of Independence in 1971, a bhori of gold cost just Tk 170. In the five decades since, prices have multiplied more than a thousandfold.
The steepest rises, however, have come in the past 25 years, notes traders.
Soaring costs have deterred buyers. Traders note that, apart from weddings or family functions, gold jewellery is no longer a regular purchase for the middle and upper-middle classes.
“Only a segment of affluent consumers remain active,” said Rahman.
WHAT CAN THE GOVT DO?
Bajus argues that more formal imports are essential to stabilise the market and align local prices with international benchmarks.
“Unlike other countries where central banks import gold, Bangladesh relies on recycled gold and baggage inflows,” Rahman explained.
“This creates a supply gap and gives rise to middlemen, who add their own profit margins.”
Allowing Bangladesh Bank to import directly, he said, would reduce volatility and bring greater transparency to the market, ensuring gold prices in Bangladesh do not drift so far above the global trend.