Domestic Gold Market Softens After Local Pure-Gold Price Retreat
The revised price is Tk 228,031 per bhori, including VAT, after a decline in the local pure-gold market.
Bangladesh's jewellery sector recorded a noticeable downward price correction this week as the Bangladesh Jewellers Association (BAJUS) lowered the retail rate of 22-carat gold by Tk 3,266 per bhori. The revised price, inclusive of value-added tax, now stands at Tk 228,031 per bhori of 11.664 grams. The new rates became effective at 10 a.m. on Tuesday, 13 October 2026, following a decision by the association's Standing Committee on Pricing and Price Monitoring.
The reduction was prompted by a decline in the local price of pure gold, widely referred to as tejabi gold. Industry observers note that BAJUS routinely calibrates domestic jewellery prices to movements in this local pure-gold benchmark rather than reacting solely to international spot prices. The latest cut partially reverses an increase announced only four days earlier. On 9 October, the association had raised the 22-carat rate by Tk 2,216 to Tk 231,297 per bhori, reflecting an earlier upward movement in the same local pure-gold market.
Other grades of gold were adjusted in parallel. The price of 21-carat gold fell by Tk 3,149 to Tk 217,767 per bhori. Eighteen-carat gold declined by approximately Tk 2,683 to Tk 187,032 per bhori, while gold produced by the traditional method was reduced by Tk 2,158 to Tk 152,798 per bhori. Silver ornament prices also saw a modest downward revision, offering limited additional relief for buyers of lower-value items.
BAJUS has indicated that the revised schedule will remain in force until further notice. Making charges continue to be levied separately and vary according to design complexity and craftsmanship. The association emphasised that the VAT component is already incorporated in the announced rates, so retailers should not charge it again at the point of sale.
Throughout 2026, gold prices in Bangladesh have been subject to frequent revisions, with dozens of upward and downward adjustments recorded as the local pure-gold market fluctuated. Such volatility has become a defining feature of the domestic jewellery trade. Buyers who deferred purchases during the brief upward spike in early October may now find a somewhat more favourable entry point, although absolute price levels remain elevated compared with historical averages from earlier years.
For consumers, the immediate effect is a reduction in the cost of new jewellery purchases, particularly for 22-carat items that dominate wedding and festive demand. Jewellers, meanwhile, must manage inventory purchased at the higher rates of the preceding days. Some retailers may choose to offer limited promotional discounts to clear older stock, while others are likely to wait for clearer signals on whether the local pure-gold price will stabilise or reverse again. The frequency of BAJUS revisions has trained many regular customers to monitor announcements closely and time larger purchases around downward moves.
The broader jewellery industry continues to navigate a challenging environment marked by high gold prices, uneven consumer spending power, and ongoing sensitivity to both local and international market signals. While the latest cut provides a short-term easing, market participants expect further adjustments if the underlying tejabi gold price shifts again in the coming weeks. For the moment, the reduction of Tk 3,266 per bhori on 22-carat gold stands as the most significant single downward movement announced in recent days and offers a measure of relief after the mid-month increase.
In practical terms, a buyer purchasing a modest set of 22-carat ornaments will now pay several thousand taka less than they would have on 9 or 10 October, depending on the total weight involved. Whether this encourages a noticeable rise in retail sales will depend on household budgets, seasonal demand, and the direction of the next price revision. BAJUS's mechanism of rapid local adjustments continues to keep domestic jewellery prices closely tethered to the pure-gold market inside Bangladesh, rather than allowing longer lags between international movements and retail rates.