Global Gold Prices Plunge Sharply, Dropping Over 80,000 Taka in Just Two Days

A massive crash in global gold prices has sent shockwaves through the market, with prices dropping by nearly 80,000 taka in just two days.

For centuries, gold has held immense value, with its price constantly moving up and down. After a long rally, international gold prices have suddenly seen a sharp fall. In just one day, global gold prices dropped by about 8.22 percent, marking one of the biggest declines in recent times.

According to Bangladesh time, at 2:30 a.m. on Friday (January 30), spot gold fell to 4,890 dollars per ounce. The previous day, the price was around 5,200 dollars. Earlier, on Thursday morning, gold prices crossed 5,550 dollars per ounce in the international market, setting an all-time record.

After reaching that historic peak, gold prices dropped by nearly 660 dollars per ounce within just two days. In Bangladeshi currency, this amounts to more than 80,500 taka. Market insiders believe such a sharp fall in a short period signals growing instability in the global gold market.

Experts say recent price surges were driven by geopolitical tensions, including disputes between the United States and NATO over Greenland, ongoing conflicts involving Iran and the Middle East, and overall global uncertainty. These factors pushed gold prices to record highs, but after touching that peak, prices started to decline over the past two days.

Analysts explain that during times of global uncertainty, demand for gold as a safe investment increases, causing prices to rise quickly. However, after earning significant short-term profits, many investors are now booking gains. At the same time, a stronger US dollar and expectations that interest rates may remain high for longer are putting pressure on gold prices. Combined with natural price correction, these factors have led to the recent decline.

The impact of the global price fall has quickly reached the local market. As a result, gold prices in Bangladesh have also seen sharp fluctuations within a short time.

On Thursday morning (January 29), the Bangladesh Jewellers Association (BAJUS) increased gold prices by 16,213 taka per bhori in a single move. This pushed the price of high-quality gold to 286,000 taka per bhori, the highest in the country’s history. However, within 24 hours, prices were reduced. On Friday morning, prices were cut by up to 14,600 taka per bhori, bringing the price of high-quality gold down to 271,000 taka. The new prices took effect from 10:45 a.m. on Friday.

According to the latest BAJUS price list, the price of 22-carat gold is set at 271,363 taka per bhori. The price of 21-carat gold is 259,000 taka, 18-carat gold is 222,024 taka, and traditional gold is priced at 182,833 taka per bhori.

Silver prices have also been revised. The price of 22-carat silver is 7,757 taka per bhori, 21-carat silver is 7,407 taka, 18-carat silver is 6,357 taka, and traditional silver is priced at 4,782 taka per bhori.

It is worth noting that economic crises can strike any country at any moment. To reduce such risks, governments store gold reserves. When central banks increase their gold holdings, gold prices tend to rise. In some cases, a country’s currency may sharply depreciate, prompting businesses to invest in gold to protect their assets, which further increases demand and prices.

The US dollar remains the world’s dominant international currency. When the dollar strengthens, gold prices usually fall, and when the dollar weakens, gold prices tend to rise.

Gold prices also depend on supply. If supply increases, prices fall, and if supply is lower than expected, prices rise. As time passes, global gold reserves are gradually declining, keeping prices elevated. Many believe gold prices may reach new all-time highs in the near future, potentially putting gold beyond the reach of ordinary people.

During periods of economic instability, many people increase their gold holdings because it is considered a safe asset with lasting value. When such trends continue, gold prices rise, and when conditions stabilize, prices either level off or decline.