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Gold prices rose again in the international market on Wednesday as yields on US Treasury bonds eased slightly.
Spot gold prices rose 0.5% to $4,356.55 per troy ounce on Wednesday (August 19). The price had fallen by nearly 2% on Tuesday.
Based on an exchange rate of around Tk122 per US dollar, the international spot price translates to approximately Tk531,500 per ounce in Bangladeshi currency. One gram would cost around Tk17,100, while one bhori (11.664 grams) would be worth approximately Tk199,400. In other words, the international market price is currently around Tk2 lakh per bhori.
However, this is only an estimate based on the international spot price. The retail price of gold in Bangladesh is likely to be higher after adding the dollar exchange rate, VAT, labour costs and making charges.
Market analysts say declining expectations of a US Federal Reserve rate hike are positive for gold prices. Investors are also concerned about the US budget deficit.
Minutes of the Federal Open Market Committee’s July meeting were scheduled to be released on Wednesday, providing insight into how central bank officials discussed interest rates.
Lower interest rates generally reduce the opportunity cost of holding gold, making the precious metal more attractive to investors and potentially pushing prices higher.
Lukman Otunuga, head of research at market research firm FXTM, said gold could rise toward $4,505 if its price holds above $4,390.
On the other hand, a fall below $4,300 could push the price toward $4,200 and then $4,150.
Geopolitical developments are also influencing the gold market. US President Donald Trump said on Tuesday that no talks were underway with Iran and that the Strait of Hormuz remained open.
Iran, however, disputed the claim, saying the key waterway remained closed to shipping.
Amid heightened US-Iran tensions, oil prices also rose for a fourth consecutive day, adding to uncertainty in the gold and oil markets over the situation in the Middle East.
Source: Reuters
