Sherpa Hossainy's Blog

Gold prices hiked again

Posted in Bangladesh, Business, Dhaka, Economy by Sherpa Hossainy on February 4, 2012

Published in The Independent on 25 January 2012

Read the article on Independent website

Digital print version

Gold prices in the local market went up in a bid to counterbalance the devaluating local currency and to keep up with the soaring international price of the item.

The new rates were effective from Tuesday. This was the second hike in gold prices within 10 days.

The price of 22-carat gold was increased by Tk 1,283 per “bhori” (local unit of gold measurement, 1 bhori = 11.664 grams), and the prices of 18-carat, 21-carat and traditional gold were increased by Tk 1,108, Tk 1,283 and Tk 1,050 per “bhori” respectively, Bangladesh Jewellers Samity (BJS) sources said.

Following the rise, the prices of gold stood at: 22-carat Tk 57,736 per “bhori”, 21-carat Tk 55,170, 18-carat Tk 47,297, and traditional gold Tk 36,158 per “bhori”, according to BJS.

Gold prices closed on $1,664 per ounce [1 ounce = 31.1034768 grams] on Tuesday in the global market, while it closed on $1,638 per ounce on 14 January, when the first price rise came to effect in the local market.

“The spiralling prices in the international market forced us to increase the gold prices in less than two weeks,” said Dewan Aminul Islam Shahin, general secretary of Bangladesh Jewellers Samity (BJS).

“Our local currency (taka) is also losing its value against dollar. We are an import-based industry and the devaluation hurts our business,” he added.

Shahin said further price hike could be on the cards if the losing trend of taka doesn’t stop and the rising trend of global gold price doesn’t show any sign of easing.


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