Gold prices have surged to a historic high, crossing $3,550 per ounce for the first time. On Wednesday (3 September), spot gold rose 0.6% to $3,554.79, briefly touching a record $3,556.01 earlier in the day.

US gold futures for December delivery climbed 0.8% to $3,621.30. Analysts attribute the rally to expectations of a Federal Reserve rate cut and rising demand for safe-haven assets amid economic uncertainty.

Experts suggest gold could rise to $3,600–$3,800 in the short to mid-term, with a possibility of reaching $4,000 by early next year.

Other precious metals also gained: silver jumped to $40.97 per ounce—the highest since 2011—while platinum rose to $1,417 and palladium to $1,148.

Bangladesh Bank has decided to merge five struggling private banks, including EXIM, after previous bailout measures failed to revive them. Analysts, however, remain skeptical about the move.

Earlier, around Tk 270 billion was injected into these banks, but they failed to recover. The planned merger may require Tk 350 billion, of which Tk 200 billion will be sought from the government. The remaining amount is expected from the Deposit Insurance Fund, IMF, and World Bank.

Before the merger, all existing shares of the banks will be nullified, and small depositors will be repaid. According to Bangladesh Bank officials, shares of the merged entity will be adjusted based on average market value.

Economic adviser Dr. Salehuddin Ahmed indicated that other banks under special monitoring might also face similar measures. However, financial sector analysts argue that instead of mergers, banks should be given time with recovery plans, and if they fail, they should be shut down.

According to Bangladesh Bank data, between September last year and May this year, deposits in these five banks dropped by Tk 220.6 billion, while non-performing loans surged to Tk 1.47 trillion—77% of their total loans.

Bangladesh is set to witness an unprecedented move in its financial sector as the central bank prepares to liquidate nine non-banking financial institutions (NBFIs) for the first time in history.

The institutions heading toward liquidation include FAS Finance, Bangladesh Industrial Finance Company, Premier Leasing, Fareast Finance, GSP Finance, Prime Finance, Aviva Finance, Peoples Leasing, and International Leasing. Together, these entities hold over half of the sector’s total defaulted loans.

Bangladesh Bank said the government has given policy approval, and the process will begin next month through the High Court, with liquidators to be appointed. Protecting depositors’ interests will be the top priority, officials confirmed.

Economists view the move as both a risk and an opportunity: while it may shake public confidence in the sector, it could also restore discipline and transparency by removing long-troubled institutions.

The government estimates that around Tk 9,000 crore will be required to complete the liquidation process.