Gold prices vulnerable to market whims: It needs to bring back on right tracks

The price of 22-carat gold has gone up in Bangladesh for the second time in about a week, reaching a record-high of nearly Tk 1 lakh per bhori. Having been adjusted by a maximum of Tk 1,516 per bhori, 22-carat gold will now cost Tk 99,144 for that amount. The new price will come into effect across the country from Sunday.
On March 18, Bajus increased the price of the precious metal to its previous high of Tk 98,794 per bhori citing the higher cost of pure gold in local markets. It is a safe-haven investment that offers diversification to an investor’s portfolio, helping it withstand volatility or short-term swings in the prices of assets that are more vulnerable to market whims.
Gold has traditionally been an asset that people go to for safety. It is a safe-haven investment that offers diversification to an investor’s portfolio, helping it withstand volatility or short-term swings in the prices of assets that are more vulnerable to market whims. Safe-haven assets typically perform well during downturns and financial crises, when riskier assets underperform.
Gold is considered to be a safe-haven asset because it has acted as a store of value, maintaining its purchasing power for thousands of years. The reality is that over the long term, the price of gold remains constant while the price of everything else goes up. With the price of gold set to increase, the cost of hallmarked 21-carat gold bars weighing about 12 kilograms will now be Tk 94,653 while 18-carat ones will be Tk 81,123 and traditional gold bars Tk 67,593.
Till Saturday, 22-carat gold ornaments were being sold at Tk 97,628 per bhori. Meanwhile, 21-carat gold jewellery was going for Tk 93,195 per bhori, 18-carat Tk 79,898 per bhori and traditional gold Tk 66,543 per bhori. Bangladesh’s economy has become volatile for the last few months, when the banking sector lost acceptance of safe investment due to trust deficiency and capital flights, people invest in gold, making it mighty. The economy following the politics has veered off, the people need to bring it back on the right track.