The gold price has been increased again in Bangladesh two days ago. One ounce of 22-carat gold is now priced at Rs 6,275. At this point, the price of gold increased by Rs 3,275.
The Bangladesh Jewelers Association has fixed the price on March 3. Last month, the price was increased by Tk 1.8. But just three months ago, gold prices fell.
Gold prices are often seen fluctuating. How is the price of gold determined?
Crisis and distrust of the dollar
The Ukraine-Russia war is said to be the reason for the rise in gold prices at this stage. Any kind of global crisis affects the price of gold, be it war or epidemic, said Dilip Agarwal, general secretary of the Bangladesh Jewelry Association.
Explaining how the crisis has affected the price of gold, he says, “Whenever people lose confidence in the dollar, they lean towards gold. The rate has risen. But now the whole of Europe is leaning toward gold. That’s why the price of gold rises when there is a crisis. “
He says the point is that the fall in the value of the dollar in the international market has an impact on the gold market. When various central banks buy more gold in times of crisis, their price goes up.
Crude oil and gold
Mr. Agarwal explains that crude oil and gold are inextricably linked. Gold is stored in the central banks of many countries just like the dollar.
Gold is a commodity but it is also widely used in payment. Even if the price of oil goes up, the price of gold goes up. The opposite is also true. If there is instability in the currency, the price of crude oil is often paid in gold.
Crude oil-producing countries want it when they are worried about whether the dollar will fall in the future. If the price of oil goes up, the price of goods goes up. As a result of which the tendency to stockpile gold increases due to apprehension, then the price also increases.
Who keeps gold in the vault of Bangladesh Bank
How profitable is gold as an investment?
How much is it possible to import gold legally with a license?
If gold is stored, the price goes up?
There is a tendency for a family in Bangladesh or a country’s central bank to store gold at different stages.
Saima Haque, a professor of economics at Dhaka University, says it is an investment that does not risk major losses if bought and stored.
“To give an example, there was a kind of uncertainty in investment when many businesses were collapsing during the coronavirus epidemic. Wants. In this case, the tendency to choose gold is much higher. Because gold is relatively safe. “
This is because the first effect of any crisis is usually on the stock market, bonds, and currency prices. As the stock market may plummet, so does gold. Then gold became a friend of danger, said Saima Haque.
Gold does not end like oil and gas. In the end, it stays on the earth with various hands. So gold has durability. On the other hand, the world has a certain amount of gold reserves. Usually, the price of any product in the market is determined based on the demand and supply of that product. Consumer behavior in many cases has a greater impact on the price of gold than its supply.
Why is the dollar rising? Whose profit, whose loss?
An incident of rape and the gold policy of Bangladesh
How is the gold market without imports?
In times of economic crisis, people tend to buy gold. The value of money cannot be kept, so it is thought that buying gold is profitable because its price tends to rise rather than fall.
Saima Haque says, “But investing and saving in gold in times of crisis increases its value.”
Gold price in the Bangladesh market
Whenever the crisis, the value of the dollar, the price of oil, inflation, inflation, and the price of gold in the international market increases, its price also increases in Bangladesh.
Dilip Agarwal says, “A jeweler’s product is jewelry, the raw material of which is bought from bullion-sellers. They follow the international market rate.”
But most of the gold sold in the Bangladeshi market is alleged to have been smuggled. The government does not get any money from these golds.
In that case, many people question how the price of gold in the market in Bangladesh is determined.