Amid ongoing global political and economic uncertainty, gold prices have seen a significant decline in the international market. The drop follows positive developments in tariff negotiations between the United States and China.
According to a Reuters report, spot gold prices fell by approximately 1.4% on Monday (May 12), reaching $3,277.84 per ounce. In the futures market, prices also slipped nearly 2%, with gold trading at $3,279.20 per ounce.
The fall comes after high-level trade talks between the US and China concluded positively on Sunday (May 11). US officials expressed optimism about reaching an agreement to reduce the trade deficit, while their Chinese counterparts reported a "significant consensus."
Analysts attribute the drop in gold prices to a stronger US dollar, which gained following progress in the trade discussions. As the dollar strengthens, investors tend to move away from gold as a safe-haven asset.
Just last month, both countries had imposed reciprocal tariffs, escalating tensions and raising fears of a global economic slowdown.
In response to the global price drop, the Bangladesh Jewellers Association (BAJUS) has lowered gold prices in the domestic market for the second time in a row. On Saturday, the price of 22-carat gold was reduced by BDT 1,050 per bhori (a traditional South Asian unit of weight), bringing the new rate to BDT 170,760 per bhori.
This updated pricing has been in effect across local markets since Sunday (May 11).
