The New Nation - Internet Edition

Mashiur Rahaman

Price of gold in local market is feared to increase by next week, coping up with the international market price hike. The precious metal was traded at all time high rates of US$868 per ounce round the globe yesterday.

According to the USGOLD.COM, market price of the yellow metal further increased by US$26 per ounce in international market within two month (Nov-Dec) as it was recorded US$ 840 per ounce in November 2007. The gold index started the year 2007 with US$625 per ounce rate, reported the US gold market expert.

The price is, however, expected to flourish further, as informed.

"While local gold price was already high, we will have to increase the price more if international gold market continues its upward move," said Dilder Ahmed Saleem, Secretary General of Bangladesh Jewellery Association (BJA).

According to him, additional price of gold would be added with present cost within this week, evaluating current international market price.

"But we will not increase the price as much as we have witnessed in the US and UK markets. It will be somewhere in the middle per unit," he added while talking to The New Nation.

At present market rate, Old (Shanatan) gold category is Tk1558 per-gm, 18 carats is Tk1,690 per-gm, 21 carats is Tk1,869 per-gm and 22 carats category is Tk1,986 per-gm.

"Present price was increased only two months ago. We have witnessed a significant customer decline in our business for this higher rate. And further gold price hike would damage our business even further," added BJA General Secretary.

According to him, customers, only who have a family wedding to perform, come to buy jewelleries now at our shops. Even then they purchase as minimum as possible as present gold rate is beyond the rich of middle-income families, he added.

"Gold as gift items do not exist any longer in the market as such customer rarely come to look gift items," he further added.

"Many families even have kept their weddings pending, expecting the gold prices to come down a little in the new year. But we have to disappoint them further," said Dilder A Saleem.

According to the USGOLD.COM analysis, the rising global oil price and dollar rate inflation in US have contributed to gold price hike. As this soft metal has been proved the only existing asset, remained profitable during last decade, more buying trend is expected.

It will increase the price even further in coming days, added experts.