Gold Shines As Prices Climb In Kolkata: Rupee Movements, Global Trends In Focus

Recycled supplies contribute only a marginal share, leaving international cues and foreign exchange movements as decisive factors in shaping daily rates.

Because gold is priced globally in US dollars, even minor shifts in the rupee-dollar exchange rate have a direct bearing on domestic rates.

Source : PTI

Kolkata witnessed strong momentum in gold prices on Tuesday, reflecting both international market dynamics and domestic currency fluctuations. India, the world’s second-largest consumer of the yellow metal after China, remains largely dependent on imports to meet its gold demand. Recycled supplies contribute only a marginal share, leaving international cues and foreign exchange movements as decisive factors in shaping daily rates.

In Kolkata, the price of 22-karat gold stood at Rs 10,260 per gram, while 24-karat gold (999 gold) was priced at Rs 11,193 per gram. This marks a notable rise as investors and households increasingly turned to gold for both cultural purchases and safe-haven investment during times of economic unpredictability.

Impact of Currency and Taxes on Domestic Prices

The Indian bullion market does not move in isolation. Because gold is priced globally in US dollars, even minor shifts in the rupee-dollar exchange rate have a direct bearing on domestic rates. A weaker rupee, for instance, increases the landed cost of imports, pushing up prices for buyers in Kolkata and other cities.

Multiple levies also shape the final price at the retail level. These include import duties, Goods and Services Tax (GST), and state-level charges, all of which amplify volatility whenever policy changes are announced. Consequently, buyers in Kolkata not only watch global headlines but also remain sensitive to government measures that may alter tax rates.

International Factors Continue to Dominate Trends

The broader direction of gold is steered by international benchmarks such as changes in bond yields, central bank decisions, and gold’s long-standing role as a hedge against uncertainty. Periods of geopolitical stress or economic slowdown often push investors worldwide to allocate more funds to bullion.

Tuesday’s rise in prices came at a time when uncertainties over global growth and trade risks were in focus. Across India, different cities reflected varied but upward movements. For example, Delhi recorded rates at Rs 10,275 per gram for 22-karat gold and Rs 11,208 per gram for 24-karat gold, while Chennai stood slightly higher at Rs 10,280 and Rs 11,215 per gram respectively.

For households in Kolkata, where gold plays a crucial role in weddings, festivals, and long-term savings, today’s prices highlight the enduring value of the metal as both an emotional and financial investment. At a time of inflation concerns and policy shifts, bullion’s appeal continues to shine brightly.