Bangladesh 22-carat gold price hits record at 17,335 taka per gram

DHAKA: Price of 22-carat gold jewellery in Bangladesh hit a historic peak. The Bangladesh Jewellers' Association (BAJUS) formally announced on Wednesday a new rate of 17,335 taka per gram for 22-carat.

BAJUS has also set revised prices for other purities at 16,547 taka per gram for 21-carat and 14,183 taka per gram for 18-carat gold.

On top of the bullion prices, a five per cent government VAT, value added tax, and a making charge of at least six per cent will be added.

The association, in a press release, clarified that this making charge is not fixed and may vary depending on the jewellery's design and quality.

Bangladesh has experienced a consistent appreciation in gold prices over recent years, with prices setting new records almost weekly.

Traders point to the volatile international bullion market, the devaluation of the taka, high inflation and general economic uncertainty as the primary drivers.

The country's annual gold demand is estimated at 20 to 40 tonnes.

In Bangladesh and across much of Asia, brides traditionally adorn themselves with gold jewellery, a cherished symbol of wealth, prosperity and financial security.

However, the soaring price of gold is now reshaping this age-old custom in the impoverished South Asian nation.

Traders in Dhaka have reported that gold jewellery sales have halved due mainly to soaring prices in recent months.

(1 US dollar equals 122 taka) 

By RSS/Xinhua