Gold Prices Surge Worldwide as Central Banks Shift Policies
Dhaka, April 2 -- Gold prices in Bangladesh have experienced unprecedented volatility over the last three months, fluctuating a total of 17 times, predominantly trending upward.
However, what explains the frequent rise in gold prices? According to traders and analysts, this trend can be attributed to the assertive measures taken by global central banks. In 2024, for the third year running, these institutions bought more than 1,000 tons of gold together, which has played a major role in driving up prices.
The Bangladesh Jewellers' Association (BAJUS) oversees local gold pricing. In the past three months, they have increased prices on fourteen occasions and decreased them thrice.
Consequently, the cost of gold has risen by Tk 47,000 per bhori when compared to last year’s figures. At the time of Eid-ul-Fitr 2024, the price for 22-carat gold stood at Tk 1.11 lakh per bhori; currently, however, this figure has climbed to Tk 1.58 lakh.
The primary driver of gold prices is the volatility observed in worldwide markets, impacting regional pricing accordingly. Despite ongoing variations in global gold values, current patterns indicate that rises occur more often and with greater magnitude compared to declines.
The rising price of gold can be attributed to geopolitical unrest, increased U.S. efforts to impose higher import duties on multiple goods, and concerns over a potential trade war. This combination has led to significant uncertainty in political, diplomatic, and economic spheres, causing numerous investors to seek refuge in gold. In fact, some individuals are choosing to withdraw funds from the equity markets to allocate towards precious metals instead.
Experts likewise point to the United States' tariff policies and ongoing gold acquisitions by central banks as major factors contributing to the increase in prices.
For the third consecutive year in 2024, central banks globally purchased over 1,000 tons of gold, which continued to drive up prices significantly.