Why Gold Prices Are Rising in Bangladesh

As of October 14, 2025, gold prices in Bangladesh have skyrocketed to Tk 213,719 per bhori (11.664 grams), up by Tk 4,618 in just one day. This makes buying gold for jewelry, weddings, or savings much more expensive. Globally, gold has reached $4,100 per ounce (around Tk 187,578 per bhori, with 1 USD = 122 BDT), a 59% jump since January 2025—the biggest yearly rise since 1979. Why is this happening, and how does it affect people in Bangladesh? Let’s break it down in simple terms.

Why Are Gold Prices So High?

Gold prices are rising for a few key reasons:

1. Inflation Worries: Around the world, the cost of daily items like food and fuel is increasing (inflation). When money loses value, people buy gold to keep their wealth safe.
2. Big Buyers: Countries like China and India are purchasing large amounts of gold to store instead of relying on the US dollar. This high demand pushes prices up.
3. Global Issues: Trade tensions, like those between the US and China, make the US dollar weaker, so more people turn to gold. Since Bangladesh imports gold, these global trends make it costlier here, affecting families planning weddings or saving for the future.

Who Decides Gold Prices?

No single person sets gold prices. They are determined by global markets like the London Bullion Market or New York’s COMEX, where gold is bought and sold daily. The price depends on how much gold is available and how many people want it. In Bangladesh, the Bangladesh Jeweller’s Association (BAJUS) uses this global price, adds taxes and crafting costs, and sets the price you see in jewelry shops. When global prices go up, local prices rise too, often with extra import costs.

What’s Happening Globally?

Gold prices have jumped 55% worldwide in 2025. Investors are pouring $64 billion into gold funds, and central banks bought 415 tons of gold in the first half of the year, showing they trust gold more than ever. Even silver, which often moves with gold, has hit record highs above $53 per ounce (around Tk 2,424.79 per bhori). For Bangladeshis, this means gold for weddings or savings is much pricier, which is tough since gold is a big part of our culture.

Has This Happened Before?

Yes, gold prices have surged like this in the past:

• In 1979, gold rose 120% due to high inflation and oil price shocks, similar to today’s economic concerns.
• In 1980, gold reached 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, and in 2020, it jumped 40% during the pandemic. Big price surges like these can see gold rise 200-300% and often last about three years. We’re two years into this surge, so it might continue for a while.

What’s Next for Gold Prices in Bangladesh?

Experts predict gold could reach $5,000 per ounce (about Tk 228,753.85 per bhori) by 2026, as more people and central banks buy gold. This means gold in Bangladesh could stay expensive, making it harder to afford jewelry for weddings or savings. However, prices might drop 10-20% if the US dollar strengthens or global tensions ease. This surge could last until 2026 or even 2028, but no one can predict exactly. If global problems worsen, prices could climb even higher, possibly to $10,000 per ounce (Tk 457,507.70 per bhori).

Is Gold a Good Investment?

Over the years, gold has been a reliable way to save money. 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. In Bangladesh, gold is not just an investment but a tradition, especially for weddings and savings. However, putting all your money in gold may not always be the best idea—stocks or bonds might perform better over time.

What Does This Mean for You?

High gold prices show that people are worried about money and global stability. In Bangladesh, gold is a trusted way to protect savings, especially when the taka weakens. But with prices so high, buying gold now is challenging. If you’re planning a wedding or saving, you might consider waiting for a price drop, though that could take time. It’s safer to spread your money across gold, savings accounts, or other investments rather than relying only on gold. While gold is valuable now, making smart financial choices will help secure your future.

Key Tips for Bangladeshis:

• For Weddings: Plan ahead and budget carefully, as gold jewelry will cost more.
• For Savings: Consider mixing gold with other investments like fixed deposits or mutual funds.
• Stay Informed: Watch global news, as events like US-China trade issues or inflation can affect gold prices.

Gold remains a symbol of tradition and security in Bangladesh, but with prices soaring, thoughtful planning is key to making the most of your money.