Why Gold Prices Are Rising in Bangladesh

As of October 14, 2025, gold prices in Bangladesh have soared to Tk 213,719 per bhori (11.664 grams), jumping Tk 4,618 in just one day. This means buying gold for jewelry or savings is now much more expensive. Globally, gold has hit $4,100 per ounce (about Tk 187,578 per bhori at today’s exchange rate of 1 USD = 122 BDT), marking a 59% rise since January 2025—the biggest yearly increase since 1979. Why is this happening, and what does it mean for people in Bangladesh? Let’s explain it simply.

Why Are Gold Prices Going Up?

Gold is getting pricier due to several reasons. First, people worldwide are worried that money is losing value because of inflation—when daily goods cost more over time. When inflation is high (above 3% in many countries), people buy gold to protect their wealth. Second, big banks in countries like China and India are buying huge amounts of gold to store instead of relying on the US dollar. This increases demand and pushes prices up. Third, global issues like trade fights between the US and China weaken the dollar, making gold more appealing. In Bangladesh, we import gold, so these global trends raise our prices, hitting families planning weddings or saving for the future.

Who Sets the Price of Gold?

No one person controls gold prices. They’re set by global markets, like the London Bullion Market or New York’s COMEX, where people buy and sell gold every day. These markets decide the price based on how much gold is available and how many people want it. In Bangladesh, the Bangladesh Jeweller’s Association (BAJUS) takes this global price, adds taxes and crafting costs, and sets the price you see in shops. When global prices rise, our local prices climb too, often with extra costs from importing.

What’s Happening Around the World?

Gold is booming globally, up 55% this year. Investors are pouring $64 billion into gold funds, and central banks bought 415 tons of gold in the first half of 2025, showing they trust gold more than ever. Even silver, which often follows gold, has reached record highs above $53 per ounce (about Tk 2,424.79 per bhori). For Bangladesh, this means gold for weddings or savings costs more, which is tough since gold is a big part of our culture and a way to store wealth.

Has This Happened Before?

Yes, gold prices have spiked like this in the past. In 1979, gold rose 120% in one year due to high inflation and oil price shocks, similar to today’s economic worries. In 1980, gold hit a peak worth about $3,486 per ounce (Tk 159,487 per bhori in today’s money). After the 2008 financial crisis, gold doubled in value from its lowest point, and in 2020, it jumped 40% during the pandemic. Big rallies like these often see gold prices rise 200-300% from their lowest to highest points and can last about three years. We’re about two years into this rally, so it might keep going.

What Should We Expect in Bangladesh?

Experts predict gold could climb to $5,000 per ounce (about Tk 228,753.85 per bhori) by 2026, driven by more people buying gold and central banks adding to their reserves. This means gold in Bangladesh could stay expensive, making it harder for families to afford jewelry for weddings or to save. However, prices might drop 10-20% if the US dollar gets stronger or global tensions calm down. This rally could last until 2026 or even 2028, but no one knows exactly when it will end. If global economic problems worsen, prices could soar higher, possibly reaching $10,000 per ounce (Tk 457,507.70 per bhori).

How Much Does Gold Earn Over Time?

Gold has been a good way to save money over the years. Since 1960, it has given an average return of about 8.4% per year. From 1971 to 2019, after adjusting for inflation, it earned about 10.6% yearly. In good years, gold can gain 10-30%, but in bad years, it can lose value, like a 32.8% drop in one year. For Bangladeshis, gold is not just an investment but a tradition. Still, putting all your money in gold isn’t always the best—stocks or bonds might do better over time.

What Does This Mean for You?

This gold price surge shows people are nervous about money and global stability. In Bangladesh, gold is a trusted way to protect savings when the taka weakens. But with prices so high, buying gold now is tough. If you’re saving for a wedding or investment, you might wait for a price drop, though that may take time. Spreading your money across gold, savings accounts, or other investments is safer than relying only on gold. While gold shines now, smart choices will keep your finances strong for the future.