Gold prices are rising in the global market, will increase further in the country

Gold prices have increased slightly due to the weakening of the US dollar and the announcement of the US Treasury Department to increase its bond repurchase program. This is the third consecutive week in which the price of this precious metal is on the rise.

Spot gold prices rose by 0.4 percent to $4,537.41 per ounce as of 11:05 am Bangladesh time on Friday (August 21). In the previous session, the price had reached its highest level since the beginning of June. So far this week, gold prices have increased by 3.6 percent.

Meanwhile, the price of US gold futures contracts rose by 0.5 percent to $4,593.90 per ounce.

The price of the US dollar is on the decline this week. This has made gold priced in dollars relatively cheaper for foreign buyers. As a result, there is a positive impact on the demand for gold.

US Treasury Secretary Scott Besant said that the government may further increase the amount of Treasury bond repurchases. Earlier on Wednesday, the Treasury Department said it would double the amount of long-term securities it buys in the next quarter to at least $4 billion in each program.

Meanwhile, two Fed officials have warned about the impact that changes in the Treasury Department's debt management could have on the Federal Reserve's monetary policy.

Lan said the future course of gold will depend largely on the Federal Reserve's next decision and how that decision changes market expectations about interest rates.

According to data released on Thursday, new applications for unemployment benefits in the United States fell slightly last week. This indicates that despite an unexpected decline in employment in July, the country's labor market is still stable. As a result, the Fed is in a position to continue to monitor inflation.

According to the CME FedWatch tool, traders are assessing a 63 percent chance that the Federal Reserve will keep interest rates unchanged next month and a 37 percent chance of raising interest rates.

Gold is generally considered a hedge against inflation. However, rising interest rates reduce the appeal of gold, which does not pay interest or income.

Meanwhile, amid geopolitical tensions, the gold market is eyeing possible US sanctions on Iran. Treasury Secretary Scott Besant has said that the “toughest sanctions” in US history will be imposed on Iran.

Among other precious metals, spot silver prices rose 1.3 percent to $68.93 per ounce on Friday. Platinum prices rose 2 percent to $1,865.29 and palladium prices rose 0.8 percent to $1,344.44. All three metals are on track to rise this week.

Meanwhile, gold and silver prices may also increase in the domestic market if prices increase in the global market. Basically, if prices increase in the global market, it affects the domestic market as well. Therefore, the prices of precious metals may also increase in the domestic market.

Earlier, the Bangladesh Jewelers Association (BAJUS) had increased the prices of gold and silver on Thursday morning (August 20). The prices of these two precious metals were increased by Tk 3,849 and Tk 233 per bhori on that day, respectively.

According to the new prices, the price of 22-carat gold per bhori (11.664 grams) including VAT in the domestic market will be Tk 2,40,628. In addition, the price of 21-carat gold per bhori has been fixed at Tk 2,29,781, 18-carat gold per bhori at Tk 1,97,355 and the price of traditional gold per bhori at Tk 1,61,196.

BAJUS said that these prices will remain effective in all jewelry establishments until further decision. However, wages are applicable according to the design of the jewelry. Since VAT is included in the selling price of gold and silver jewelry, VAT cannot be collected separately from customers. Apart from this, the previous rules of Bajus will remain in force in the exchange and purchase of ornaments, excluding specific VAT, wages and stones.

In this regard, the price of gold has been adjusted 105 times in the domestic market so far this year. Where the price has been increased 53 times, reduced 51 times and adjusted 1 time VAT. And in 2025, the price of gold was adjusted a total of 93 times in the domestic market; where the price was increased 64 times and reduced 29 times.

Along with the increase in the price of gold, the price of silver has also been increased in the domestic market. The price of a 22-carat bhari has been set at 5,307 taka including VAT, increasing by 233 taka per bhari. In addition, the price of 21-carat bhari has been set at 5,074 taka per bhari, 4,374 taka per bhari for 18-carat and 3,324 taka per bhari for traditional silver.

In this regard, the price of silver has been adjusted 63 times in the domestic market so far this year. Where the price has been increased 33 times; The remaining 30 points have been reduced. And in 2025, the price of silver was adjusted a total of 13 times in the domestic market. Of which, it increased 10 times and decreased only 3 times.

Reuters news.