Gold prices in Bangladesh have surged by a staggering 40% over the first nine months of 2025, making it an increasingly valuable yet less accessible asset for consumers.
The rising cost has impacted both the country’s investment portfolios and the local jewellery market, which is now seeing significantly reduced demand.
The price of 22-carat gold reached Tk 195,384 per bhori at the end of September, setting a new historic record. Just nine months ago, the same gold was priced at Tk 138,288 per bhori, reports UNB.
This increase, which included a Tk 2,415 per bhori hike on Tuesday, comes after a Tk 21,000 per bhori spike in September alone. Bangladesh Jewellers Association (BAJUS) which regulates the country’s gold prices, confirmed the steep climb in costs.
Despite gold’s status as a popular jewellery item, sales have drastically declined.
Gobinda Halder, a gold trader in Tantibazar, explained, “Gold prices have been rising uncontrollably for decades. In 2000, the price of one bhori of gold was below Tk 10,000. Today, the relentless price hikes have halved our customer base.”
Many buyers now only visit jewelers to sell gold or obtain loans against it. According to BAJUS, the price has been adjusted 41 times in 2025 alone, with 17 reductions, the latest of which occurred on September 27. Last year saw 62 price changes, including 35 increases.
Historical data shows a sharp rise in gold prices over the past 25 years. In 2000, the price of 22-carat gold was just Tk 6,900 per bhori. By 2010, it had increased to Tk 42,165, and by 2020, it stood at Tk 59,195.
Over the past five years, the price has jumped by 229%, and over the last decade, it has risen by 361%. The 25-year increase has been an astonishing 2719%.
Masudur Rahman, chairman of BAJUS’s Price Fixing and Monitoring Standing Committee, attributed the increase in gold prices to factors such as the Russia-Ukraine war, dollar depreciation, and increased reserves in China’s central bank.
Internationally, the spot price of gold currently stands at $3,742 per ounce, or Tk 187,880 per bhori. The price of gold on the international market has risen by nearly $1,000 in just nine months, and the World Gold Council projects that prices could exceed $4,000 per ounce in 2025.
However, the rise in gold prices has led to a significant drop in sales. Gold sales in Bangladesh have fallen by 55% over the past nine months, with similar declines in India (40%) and Dubai (nearly 20%).
The price of gold is seen as essential in Bangladeshi weddings, where gifting gold ornaments has been a longstanding tradition. In recent years, however, rising prices have made even a simple piece of jewellery unaffordable for many.
Anwar Hossain, a private-sector employee, shared, “I wedded my daughter with her mother’s jewelry.” A middle-class wedding in Bangladesh now has a budget of Tk 500,000, which is often insufficient to cover the rising cost of gold.
Despite the volatility, BAJUS leaders defend the price adjustments, claiming they reflect the fluctuations of the international market.
However, the World Gold Council highlighted that while the price of gold is rising, global gold reserves have remained steady, underlining the metal’s continued value as an investment.
Globally, gold reserves are split as follows: 40% for investment purposes, 33% used in jewellery, 20% held by central banks, and 7% utilised in chip manufacturing. The total global demand for gold in 2024 is forecasted to reach 4,974 tonnes, valued at $600 billion.
Although official data on gold demand and reserves in Bangladesh is scarce, it is estimated that about 4.4 million people in the country are involved in the gold trade, either directly or indirectly.
