Why is gold market so unstable?

The instability of the international gold market has adversely affected Bangladesh, leading to frequent price adjustments that have affected traders and consumers alike. With no apparent end to the instability in sight, consumers are worried that the precious metal will soon go beyond their purchasing capacity. Bangladesh has seen record price hikes in the last four months. However, as international gold prices cooled down, Bangladesh Jewelers Association (BAJUS) cut the price four times in quick succession. But stability won’t return to Bangladesh if the global market remains volatile, BAJUS said. Data from the association show that gold prices were adjusted 12 times in the first four months, with seven increases and five cuts. In April alone, the prices have been adjusted seven times. BAJUS Standing Committee on Pricing and Price Monitoring Chairman and BAJUS Vice-President Masudur Rahman told Somoy that the ongoing Middle East conflict is pushing up gold prices. The instability has affected both buyers and sellers. Rahman said that the prices of oil, gas and gold will continue to rise if the ongoing conflict in the Middle East continues and the Federal Reserve Bank lowers the interest rate. “We’ll then need to adjust prices,” he added. Gold prices have been up 7.55 percent in the last four months. And in the last 16 months, it increased by 35.08 percent. Meanwhile, economist Mahfuz Kabir said that the price of gold is fluctuating on the global market mainly due to the interest rate of the Federal Reserve and geopolitical tensions. “BAJUS had to quickly adjust the local prices,” he said. He also feared that gold would be smuggled to neighbouring countries if the prices were not adjusted. On April 27, BAJUS revised its gold prices again. It cut the price of 22-carat gold by Tk 629 per bhori (11.664g), which means each carat of top-quality gold will now cost Tk 112,931. On April 25, the price of top-quality 22-carat gold had been reduced by Tk 630 per bhori on the local market. Each bhori (11.664g) of 22-carat gold costs Tk 113,560. On April 24, gold prices were reduced by Tk 2,100 on the local market. On April 18, BAJUS raised the prices, pushing them up to their highest level in Bangladesh’s history. The new revised prices will be effective at 4:30pm today (April 27). It will remain in effect until further notice.
Published on: 2024-04-28 04:47:33.351248 +0200 CEST