Tuesday, 07 October, 2025
Gold has smashed records in Bangladesh once again, with the Bangladesh Jewellers Association (BAJUS) announcing a hike of Tk 2,192 per bhori, setting the price of 22-carat gold at Tk 1,97,576 per bhori—the highest in the nation’s history.
The revised rate, effective from Sunday, comes as global bullion markets surge to near-unprecedented highs amid fears of a slowing U.S. economy, political turmoil in Washington, and renewed central bank gold buying.
The adjustment marks the second major hike in just a week, after BAJUS raised prices to Tk 1,95,384 per bhori on September 29.
The relentless upward spiral now brings domestic prices within striking distance of Tk 2 lakh per bhori, a psychological threshold that underscores gold’s newfound dominance as both a store of value and a hedge against economic shocks.
Global Forces Behind the Local Spike
The BAJUS move reflects extraordinary volatility on the world stage. Spot gold hovered above $3,885 an ounce on Friday, just $12 shy of Thursday’s record high of $3,896. Analysts say bullion is heading for a seventh straight week of gains, supported by safe-haven demand, rate-cut bets, and a weaker dollar.
U.S. political paralysis: The government shutdown in Washington, now in its third day, has delayed critical economic data, including the non-farm payrolls report, clouding central bank decision-making. Chicago Fed President Austan Goolsbee warned the shutdown would “make it harder” to gauge the economy’s health.
Rate-cut fever: Investors are betting on at least two Federal Reserve rate cuts before year-end, with markets pricing in a 97% chance of an October cut. Lower rates historically fuel gold rallies by reducing the appeal of interest-bearing assets.
Central bank demand: From China to the Middle East, central banks are adding aggressively to gold reserves as part of a de-dollarization push, further tightening global supply.
Geopolitical tensions: Escalating frictions between Russia and NATO, along with uncertainty around Donald Trump’s renewed attacks on the Fed, have kept investors on edge, reinforcing gold’s role as a safe haven.
The result: Gold has surged 48% so far in 2025, its strongest run since 1979 when oil shocks and political upheaval sent bullion soaring.
Bangladesh at the Crossroads
In Bangladesh, the latest BAJUS hike pushes:
21-carat gold to Tk 1,88,595 per bhori, 18-carat gold to Tk 1,61,651, and Traditional method gold to Tk 1,34,253.
Consumers will also face a 5% government VAT and a minimum 6% making charge, though actual costs vary by design. The sharp increase is expected to hit domestic jewellery demand, but traders note that gold’s investment appeal may now outpace its ornamental use.
Outlook: $4,000 in Sight?
Global banks are raising their forecasts. UBS expects bullion to touch $3,800 by year-end, while Deutsche Bank and Goldman Sachs have upgraded their outlooks to $4,000 per ounce by 2026. Bloomberg data shows over $17.6 billion flowed into gold funds in the past month alone, underscoring investor conviction.
Yet analysts caution that gold remains technically “overbought” and vulnerable to a pullback if U.S. economic data stabilizes or geopolitical tensions ease.
Still, with the dollar weakening and political dysfunction deepening, few see an alternative to bullion. As one London strategist put it: “There is no quantitative easing of geology—gold’s scarcity makes it the ultimate hedge when trust in governments falters.”
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Gold has smashed records in Bangladesh once again, with the Bangladesh Jewellers Association (BAJUS) announcing a hike of Tk 2,192 per bhori, setting the price of 22-carat gold at Tk 1,97,576 per bhori—the highest in the nation’s history.
The revised rate, effective from Sunday, comes as global bullion markets surge to near-unprecedented highs amid fears of a slowing U.S. economy, political turmoil in Washington, and renewed central bank gold buying.
The adjustment marks the second major hike in just a week, after BAJUS raised prices to Tk 1,95,384 per bhori on September 29.
The relentless upward spiral now brings domestic prices within striking distance of Tk 2 lakh per bhori, a psychological threshold that underscores gold’s newfound dominance as both a store of value and a hedge against economic shocks.
Global Forces Behind the Local Spike
The BAJUS move reflects extraordinary volatility on the world stage. Spot gold hovered above $3,885 an ounce on Friday, just $12 shy of Thursday’s record high of $3,896. Analysts say bullion is heading for a seventh straight week of gains, supported by safe-haven demand, rate-cut bets, and a weaker dollar.
U.S. political paralysis: The government shutdown in Washington, now in its third day, has delayed critical economic data, including the non-farm payrolls report, clouding central bank decision-making. Chicago Fed President Austan Goolsbee warned the shutdown would “make it harder” to gauge the economy’s health.
Rate-cut fever: Investors are betting on at least two Federal Reserve rate cuts before year-end, with markets pricing in a 97% chance of an October cut. Lower rates historically fuel gold rallies by reducing the appeal of interest-bearing assets.
Central bank demand: From China to the Middle East, central banks are adding aggressively to gold reserves as part of a de-dollarization push, further tightening global supply.
Geopolitical tensions: Escalating frictions between Russia and NATO, along with uncertainty around Donald Trump’s renewed attacks on the Fed, have kept investors on edge, reinforcing gold’s role as a safe haven.
The result: Gold has surged 48% so far in 2025, its strongest run since 1979 when oil shocks and political upheaval sent bullion soaring.
Bangladesh at the Crossroads
In Bangladesh, the latest BAJUS hike pushes:
21-carat gold to Tk 1,88,595 per bhori, 18-carat gold to Tk 1,61,651, and Traditional method gold to Tk 1,34,253.
Consumers will also face a 5% government VAT and a minimum 6% making charge, though actual costs vary by design. The sharp increase is expected to hit domestic jewellery demand, but traders note that gold’s investment appeal may now outpace its ornamental use.
Outlook: $4,000 in Sight?
Global banks are raising their forecasts. UBS expects bullion to touch $3,800 by year-end, while Deutsche Bank and Goldman Sachs have upgraded their outlooks to $4,000 per ounce by 2026. Bloomberg data shows over $17.6 billion flowed into gold funds in the past month alone, underscoring investor conviction.
Yet analysts caution that gold remains technically “overbought” and vulnerable to a pullback if U.S. economic data stabilizes or geopolitical tensions ease.
Still, with the dollar weakening and political dysfunction deepening, few see an alternative to bullion. As one London strategist put it: “There is no quantitative easing of geology—gold’s scarcity makes it the ultimate hedge when trust in governments falters.”
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