Gold prices in Bangladesh dropped sharply on Monday, experiencing two declines within hours after hitting record highs just days earlier, highlighting growing volatility in the precious metals market.

The price of 22-carat gold decreased by Tk 12,014 per bhari in two phases, settling at Tk 245,760, according to the Bangladesh Jewellers Association.

On February 1, gold was trading at around Tk 2.57 lakh per bhari.

By the morning of February 2, the price fell to Tk 2.51 lakh following a cut of Tk 6,590.

There was another cut in price again in the afternoon when BAJUS revised the rate, reducing another Tk 5,424 and bringing the price down to Tk 2.45 lakh per bhari, effective from 3:45 pm.

BAJUS said the latest reduction was prompted by a fall in the price of pure gold in the local market, leading to a reassessment of domestic prices considering the overall market situation.

The downturn comes just days after gold reached an all-time high of Tk 2.86 lakh per bhari on January 29, underscoring a dramatic turnaround in a market that has remained highly volatile in recent weeks.

Under the revised rates, the price of 21-carat gold has been fixed at Tk 234,563 per bhari, 18-carat gold at Tk 211,087, and traditional gold at Tk 164,523 per bhari.

BAJUS said a government-mandated 5 per cent VAT and a minimum 6 per cent wage set by the association must be added to the selling price, with the wage component varying depending on the design and quality of jewellery.

This marks the third consecutive price cut by BAJUS, with gold prices falling by a cumulative Tk 13,939 over the last three adjustments within just 24 hours.

Overall, gold prices have been revised 22 times so far this year, raised 14 times and reduced eight times.

Silver prices also declined alongside gold.

The price of 22-carat silver fell by Tk 933 to Tk 6,357 per bhari.

Under the new rates, 21-carat silver is priced at Tk 6,065 per bhari, 18-carat silver at Tk 5,020, and traditional silver at Tk 3,907 per bhari.

This year, silver prices have been adjusted 15 times in the domestic market, with nine increases and six reductions.

Meanwhile, the global precious metals market also witnessed a heavy slump.

According to an AFP report, gold prices continued their sharp decline on Monday, shedding 4.3 per cent to $4,682 per ounce, while silver slid nearly five per cent to $81 per ounce, adding further pressure on local prices.