The price of gold in Bangladesh appears to be higher than that in India, China and the USA as the local jewellers raised it by Tk5,950 per bhori in less than a week.
Bangladesh Jewellers Samity (Bajus) yesterday set the price at Tk82,464 per bhori of 22 carat gold, up by Tk4,199 from the rate set four days ago.
On 17 May, Bajus raised the price of gold by Tk1,750 a bhori in local markets.
The association revised gold price upward citing global price hike, although the price of the precious metal dropped to its lowest in months in the US market.
If converted to bhori from gram and ounce, the units followed in global trade, gold price in the US would be Tk66,900 in US, Tk64,801 in India and Tk60,625 in China as per the current exchange rates with dollar.
The latest hike, effective from today, puts the price of 21-carat gold at Tk78,732 while 18-carat gold will be available at Tk67,534 and gold acquired in traditional method will cost Tk56,220.
Till Saturday, the price of 22-carat gold was Tk78,265 per bhori. The price of 21-carat gold was Tk74,707 per bhori while 18-carat gold was available at Tk64,035 and gold acquired in traditional method was sold for Tk53,362.
Gold is treated as an investment hedge against inflation and fluctuation in bond yields in global market, and the rate is determined by the market on factors like investors' demand, dollar price and interest rate on bonds.
In Bangladesh, it is set by the traders' association and imposed on buyers of gold jewelry.
Bullion fell more than 2% on 3 May to $1,858.10 per ounce, lowest since 16 February as the dollar and yields strengthened even before the rate hikes by the US central bank, says a Reuters report.
As inflation spikes and local currency lose value against dollar, investors in India are increasingly looking at gold as an important investment as a perfect hedge, according to The Economic Times of India.
[1 bhori equals to 11.664 gram; 1 ounce equals to 2.43 bhori.]