Guinea or 21-carat gold had been selling at Tk 8,800 and 22-carat at Tk 9,100 per bhori in the domestic market since the last price hike in September.

Gold merchants in Bangladesh have decided to increase the prices again in the wake of global price spiral of the precious metal.

"This is for the fourth time gold prices increased this year. Prices rose several times last year and after a short break in early this year gold is now becoming dearer again" said a leader of Bangladesh Jewellers Samity (BJS).

In January 2002, guinea price was Tk 6,700 and 22-carat Tk 7,000 per bhori in the local market. Prices shot up several times to reach Tk 7,900 for guinea and Tk 8,200 for 22-carat in December last year, the BJS leader said.

As international gold price continued to climb, local merchants made price adjustments in line with the global trend.

Guinea price was Tk 8,200 and 22-carat Tk 8,500 per bhori early this year. Then the prices came down to Tk 7,950 and Tk 8,250 respectively for a brief period. On May 21, gold price again increased by Tk 350 per bhori and in June it rose by Tk 200.

Price of guinea went up to Tk 8,800 and 22-carat to Tk 9,100 per bhori on September 4 and the rates remain valid until yesterday.

"As gold prices are soaring globally, we have to make adjustments with the international market," Anwar Hossain, president of Bangladesh Jewellery Manufacturers and Exporters Association (BJMEA), told The Daily Star yesterday.

Big investors are continuously reserving gold instead of dollars and stocks, pushing the prices up in the international market, he added.

According to the BJMEA president, average gold price in the international market was US$355 per ounce (28.35 gram) in January this year. Now the price is around $400 per ounce, he mentioned.

Hossain said annual demand of gold in Bangladesh is about 2 tonnes and the demand is met by recycling. If the price is not adjusted the precious metal could be smuggled out. Neighbouring India has a huge demand of gold.