Staff Reporter :
Gold prices in Bangladesh have surged to historic highs, fuelling concern and confusion among consumers and traders alike as rates now significantly outpace those in neighbouring India and even global trading hubs such as Dubai.
As of Wednesday, the price of gold in Bangladesh stood at Tk 1.72 lakh per bhori (11.664 grams), equivalent to $1,414 – compared to $1,189 in India and $1,137 in Dubai. The day before, prices had reached an all-time high of Tk 1.77 lakh per bhori,
before easing slightly.
The persistent rise-marking the 19th hike this year by the Bangladesh Jewellers’ Association (BAJUS)-has been attributed to a complex combination of domestic supply shortages, currency depreciation, and an overreliance on informal sourcing channels.
Industry insiders and economists agree that the sharp disparity between Bangladeshi and international gold prices stems primarily from a chronic imbalance between demand and legal supply. While the country’s annual gold demand is estimated at 20 to 40 tonnes, formal imports remain negligible.
Masudur Rahman, Vice-President and Spokesperson for BAJUS, said jewellers are compelled to purchase gold from local markets-often outside formal trade systems – due to the inactivity of official import channels.
“Since we cannot source gold legally, we are dependent on local suppliers, and that’s why we cannot align our pricing with international markets,” Rahman told reporters. “We must follow that process.”
The situation is compounded by the high cost of legally imported gold, which includes a Tk 2,000 tax per bhori, 5 per cent VAT, and advance income tax, along with insurance and freight charges. Jewellers argue that the official import route is simply not financially viable.
Further complicating matters is an ongoing shortage of foreign currency, which has made banks reluctant to open letters of credit (LCs) for gold imports.
Gold pricing in Bangladesh is largely dictated by informal networks in Dhaka’s Tantibazar, where traders set rates based on prices from Kolkata and other regional markets. These are wholesale prices intended for jewellers, yet they effectively determine retail pricing across the country.
One trader explained that Kolkata’s prices are generally announced around midday, after which Dhaka traders follow suit – creating a reactive pricing loop that often ignores broader global market trends.
This informal mechanism helps explain why Bangladesh’s gold prices frequently exceed global levels. “Even if global prices fall, local prices remain high unless supply improves and the local currency stabilises,” said a Dhaka-based jeweller.
Since 2022, the Bangladeshi taka has depreciated by nearly 40 per cent, further amplifying the impact of rising international gold prices. The dual forces of currency weakness and global market pressure have created a price spiral with little relief in sight.
“Even if global gold prices had remained stable, the fall of the taka alone would have pushed up local gold prices,” noted an economist from a private university. “Unfortunately, both forces moved in the wrong direction for consumers.”
The government’s Gold Policy 2018, introduced to curb smuggling and encourage transparency, has delivered limited results. Although 18 companies and one bank were authorised to import gold, only 160 kilograms were brought into the country between 2020 and 2021 – far below what is needed to meet demand.
Industry insiders estimate that up to 80 per cent of national gold demand is met through smuggling. This not only inflates prices but also results in substantial revenue losses for the government.
While gold imports are not officially banned, the prohibitive tax regime and weak enforcement of policy mechanisms continue to deter legal trade.
On the international front, gold prices briefly hit record highs this week before retreating amid positive signals from U.S. policymakers. Spot gold dropped 1.5 per cent to $3,372.68 an ounce, while U.S. futures settled at $3,419.40 following remarks by U.S. Treasury Secretary Scott Bessent about easing trade tensions with China.
While these developments offer some relief in global markets, their impact on Bangladesh remains limited due to structural imbalances at home.
With no significant policy changes anticipated and formal imports effectively stalled, traders believe gold prices in Bangladesh are unlikely to see meaningful declines in the near term.
“As long as demand continues to exceed supply – and legal imports remain unfeasible-prices will remain high,” one trader cautioned.
