Global Gold Prices Dip as Dollar Gains Strength

International gold prices declined on Thursday, pressured by a strengthening US dollar and reduced expectations of a Federal Reserve rate cut in December. Investors have been shifting away from gold, traditionally a safe-haven asset, as attention turns to upcoming US economic data and potential changes in monetary policy.

According to a Reuters report, spot gold fell by 0.4% to $4,063.81 per ounce during mid-session trading, while US gold futures for December delivery dropped by 0.5%, settling at $4,063.60 per ounce. Analysts attributed the decline to a shift in investor sentiment, with market participants increasingly favouring the dollar amid a stronger economic outlook in the US.

Market analyst Kelvin Wong noted that the drop in expectations for a rate cut over the past two weeks had contributed significantly to the recent decline in gold prices. He added that any unexpected policy announcement from the Federal Reserve could trigger further volatility in the global gold market.

Meanwhile, in Bangladesh’s domestic market, the price of gold per bhori (11.664 grams) on Thursday, 20 November, was set at Tk 209,520. This followed an increase of Tk 2,612 per bhori by the Bangladesh Jewellers Association (BAJUS) on Wednesday, 19 November. BAJUS explained that the rise in pure gold prices in the local refining market, along with international trends, influenced the new domestic rates.

The updated domestic prices for gold per bhori are as follows:

BAJUS further clarified that the government-imposed 5% VAT and a minimum making charge of 6% must be added to the jewellery sale price. Making charges may vary depending on the design and quality of the items.

Market observers suggest that gold prices may continue to fluctuate in the coming weeks, depending on US economic indicators, Federal Reserve policy decisions, and global currency trends.

SS