Gold will be marginally cheaper starting today as the Bangladesh Jewellers' Association (Bajus) decided to cut its prices yesterday.

The association cut gold prices by Tk 1,621 to Tk 126,321 a bhori (11.664 grammes) from the existing Tk 127,942 a bhori, the highest in the history of Bangladesh.

The association's standing committee on pricing and price monitoring decided in a meeting yesterday, citing a decrease in pure gold prices in the local market.

The reduced rate will be effective from today, according to a statement by the Bajus.

The previous price of each bhori of 22-carat gold ornaments was Tk 127,942 per bhori.

Annual demand for gold in the country currently stands between 20 and 40 tonnes.

At present, about 80 percent of the demand is met by smuggled gold, according to industry people.