Gold prices rise in Bangladesh jewelry shops

International spot gold fell 0.2% to $4,287.69 an ounce on Tuesday, after an earlier decline on Monday that took it to the lowest level since Aug. 7. U.S. gold futures slipped 0.5% to $4,328.10 an ounce. Even with that retreat, the metal remains at a level that translates into roughly $1,607.91 per bhori, or about Tk1,97,800 assuming Tk123 to the dollar.

The immediate pressure on gold is coming from rising oil prices, which have revived inflation worries and pushed traders to reassess the Federal Reserve’s next move. Markets are awaiting the Fed’s two-day meeting outcome on Wednesday, with expectations centered on a 25-basis-point rate increase that would lift policy rates to 3.75%-4%. Higher interest rates tend to weigh on gold because the metal does not yield income, making interest-bearing assets more attractive by comparison.

That backdrop is reinforced by the latest U.S. inflation data, which showed consumer prices rising in August and a key core measure posting its biggest increase in four months. For investors, that combination is a reminder that gold’s long-term support from safe-haven demand can coexist with sharp short-term volatility whenever rate expectations shift.

Technical positioning also points to a market that is stretched but not broken. Gold ETF GLD was trading near $394.15, still below its 200-day moving average of roughly $416, while its 50-day average sat near $391.75. The relative strength index around 28 suggests the fund is close to oversold territory, but the MACD has weakened, indicating momentum has cooled after the earlier surge.

Adalytica’s Gold Fear & Greed Index was in “Extreme Fear” at 11, underscoring how quickly sentiment has turned from euphoria to caution. By contrast, the U.S. dollar trade signal remained elevated, reflecting a stronger dollar backdrop that can also cap bullion gains.

For buyers in Bangladesh, the message is straightforward: local gold remains expensive because the global benchmark is still far above normal trading ranges, even after the latest dip. For investors, the key catalyst is the Fed decision and its guidance on inflation and rates; a more hawkish tone could deepen the correction, while any signal that the tightening cycle is nearing its peak could quickly revive bullion demand.