21 carat gold, known as guinea gold, was selling at Tk17,600 and 22 carat at Tk18,475 a bhori (11.66 grams) last month.

At the same time, Bangladesh Jewellery Manufacturers and Exporters Association (BJMEA) also raised the prices of silver, known as sister metal of gold, by Tk100 a bhori.

Now silver is selling at Tk550 a bhori in the local market against Tk450.

Metal prices fluctuate everyday in the world market everyday but we reshuffle prices of the precious metal from time to time, Anwar Hossain, president of BJMEA, said.

He also attributed the price hike to the volatile world market that has witnessed the highest gold price since 1981.

Gold prices yesterday reached US $ 716.20 per ounce (31.1 gram) in international market, which is the highest since1981.

The precious metal is shining because of weakening US dollar as well as high oil prices, jewelers said.

They also said gold is regarded as an alternative investment in times of rising inflation and political uncertainty.

Big economies are also reserving gold as an alternative to US dollar, the jewelers mentioned.

The gold prices have been witnessing continuous rise since the 9/11 incident as many countries especially Gulf states have resorted to gold reserves instead of US dollar, a jewellery shop owner said.

The price of guinea or 21 carat gold was only Tk 6,700 and the price of 22 carat was Tk 7,000 per bhori in January 2002.

The BJMEA chief said total demand for gold in the domestic market decreased to 30 tons this year from 50 tons in 2001, thanks to high prices.

At the same time, the total workers involved with jewellery industry decreased to 1.5 million from 2 million in 2002-03, the BJMEA chief added.