In this subcontinent, gold has long been more than a commodity. It is a store of family wealth, a hedge against uncertainty and a refuge when confidence in financial markets weakens. In Bangladesh’s social fabric, gold also carries deep cultural meaning. For many women, wearing gold ornaments is not only a sign of financial security but an enduring expression of style and tradition, one for which families are willing to pay a premium even as prices climb.
Over the past two years, that trust has been reinforced. Gold prices have surged to record highs across global markets, with effects felt just as strongly at home. What began as a gradual rise in 2024 evolved into one of the most striking rallies in modern history, reshaping investor behaviour, household savings and expectations.
At the start of 2023, international gold prices hovered around $1,900 per ounce. Although gold was already seen as a defensive asset, few anticipated the scale of the rise that followed. By the end of 2024, prices had climbed beyond $2,700 an ounce, supported by inflation concerns and rising geopolitical tensions. Momentum accelerated in 2025.
As economic uncertainty deepened and central banks stepped up purchases, prices surged. By early 2026, gold briefly crossed $5,000 an ounce, a historic peak that reaffirmed its status as the preferred safe-haven asset. Prices have eased in recent weeks as investors took profits and unwound overleveraged positions after the sharp rally. The correction appears temporary.
Bangladesh mirrored the global trend. Local 22-carat gold prices rose from about Tk 88,400 per bhori in 2023 to nearly Tk 250,000 per bhori in early 2026. For many households, gold has been one of the strongest-performing assets in recent years. The surge reflects a combination of financial and geopolitical forces rather than a single trigger. Persistent global uncertainty, from conflicts to trade tensions and policy instability in major economies, has increased demand for safe assets.
Gold carries no credit risk and is widely accepted. Central banks have also boosted purchases to multi-decade highs as countries diversify reserves away from the US dollar. Structural demand, particularly from large economies seeking greater financial resilience and reduced reliance on dollar-denominated assets, has tightened supply and supported prices.
Interest rate expectations have played a role. As inflation eased, markets began to anticipate rate cuts in advanced economies, lowering the opportunity cost of holding non-yielding assets such as gold. A softer US dollar added to its appeal, especially in emerging markets. Investment demand strengthened as gold exchange-traded funds attracted renewed inflows from institutional and retail investors seeking protection against currency weakness and stock market volatility.
For Bangladesh, the rally has implications beyond global market trends. Gold remains an important store of value, especially during periods of inflation and currency depreciation. Since 2022, the taka has weakened significantly against the US dollar, amplifying the rise in local gold prices.
At the macroeconomic level, gold forms part of national reserves. The Bangladesh Bank holds more than 14 tonnes as part of its reserve assets, underscoring its role as a strategic safeguard during global uncertainty.
Many analysts expect prices to remain elevated, supported by geopolitical risks, strong central bank demand and sustained investor interest. Short-term volatility is inevitable, but the broader trend suggests gold will continue to trade well above historical averages. For households and policymakers alike, the recent rally highlights gold's enduring relevance, not merely as a precious metal but as a financial anchor in an increasingly uncertain global economy.
The writer is the managing director of IDLC Investments Limited
