Gold Prices Dip In Kolkata; Demand Stays Firm Amid Global Volatility

In addition to currency volatility, local gold prices in Kolkata are influenced by multiple domestic levies, including import duties, GST, and other state-level taxes.

The yellow metal is traditionally regarded as a safe-haven asset, especially during times of inflation and global uncertainty.

Source : Freepik

Kolkata witnessed a slight dip in gold prices on Tuesday, with the yellow metal mirroring global cues and currency fluctuations. The latest figures show that 22-karat gold is priced at Rs 9,235 per gram, while 24-karat gold, also referred to as 999 gold, stands at Rs 10,075 per gram.

As India continues to be the world’s second-largest consumer of the precious metal, just behind China, its domestic market is highly dependent on imports. Recycled gold contributes only a small portion to overall supply. Given that international trade in gold is denominated in US dollars, any shift in the rupee-dollar exchange rate immediately alters Indian prices.

Factors Influencing Kolkata Gold Rates

In addition to currency volatility, local gold prices in Kolkata are influenced by multiple domestic levies, including import duties, GST, and other state-level taxes. On Tuesday, gold prices declined, aligning with weak trends in global markets and cautious investor behaviour.

The yellow metal is traditionally regarded as a safe-haven asset, especially during times of inflation and global uncertainty. However, its pricing remains highly vulnerable to international shifts such as changes in US bond yields, monetary policy signals from major central banks, and the impact of tariffs on global trade.

Vinod Nair, Head of Research at Geojit Investments, recently highlighted how broader market sentiment can play into gold demand. “A weakening US Dollar, along with robust monthly auto sales and encouraging quarterly results from leading automakers, helped renew investor interest in these sectors. Meanwhile, rising unemployment and slower job creation in the US have reinforced expectations of a potential Fed rate cut. However, there still remains room for caution due to high US tariffs.” His assessment underscores how global cues ripple into commodity markets like gold.

Gold Prices Across Major Indian Cities

Kolkata’s rates remain broadly in line with those in other metropolitan hubs. In Delhi, gold stands at Rs 9,250 per gram for 22-karat and Rs 10,090 per gram for 24-karat. Mumbai, Bengaluru, Hyderabad, and Chennai each report Rs 9,235 per gram for 22-karat and Rs 10,075 per gram for 24-karat. Ahmedabad and Indore show slightly higher levels at Rs 9,240 and Rs 10,080 per gram respectively, while Lucknow matches Delhi at Rs 9,250 and Rs 10,090 per gram.

Despite the price dip, analysts note that demand for gold in Kolkata remains resilient, particularly as households continue to prioritise the metal for investment and cultural reasons. With ongoing concerns about inflation, trade disputes, and interest rate expectations, gold retains its appeal as a hedge against financial uncertainty.