Kolkata Gold Prices Steady Amid Global Economic Uncertainty: What's Driving Demand?

In the city, 22-karat gold was priced at Rs 9,275 per gram, while 24-karat gold, also referred to as 999 gold, traded at Rs 10,118 per gram.

Given that the metal is traded in US dollars, the rupee-dollar exchange rate plays a key role in determining domestic prices.

Source : Freepik

Gold rates in Kolkata remained unchanged on Monday, in line with stability across major Indian cities, as international and domestic factors continue to shape the precious metal’s performance. In the city, 22-karat gold was priced at Rs 9,275 per gram, while 24-karat gold, also referred to as 999 gold, traded at Rs 10,118 per gram.

India, the world’s second-largest consumer of gold after China, imports the bulk of its supply, with recycled gold forming only a minor share. Given that the metal is traded in US dollars, the rupee-dollar exchange rate plays a key role in determining domestic prices. Local levies such as Goods and Services Tax (GST), import duties, and state taxes further add layers to the final retail cost for buyers.

Global and Domestic Factors at Play

Gold has long been seen as a safe-haven asset, especially during times of inflationary pressures or financial uncertainty. Its price, however, is prone to frequent swings as global bond yields, central bank policies, and investor sentiment shift. Market analysts point out that while Indian buyers remain traditionally drawn to gold for cultural and investment purposes, global developments such as US monetary policy moves or international trade shifts can quickly filter into domestic pricing.

Despite volatility in recent weeks, the steady pricing trend in Kolkata comes as a relief for households and traders. The festive season, which usually sees a spike in jewellery demand, has kept local markets active. Investors are also monitoring global cues closely, particularly in light of concerns about global economic growth and expectations around future rate cuts in advanced economies.

Gold Rates Across Major Cities

Across India, gold prices reflected a largely uniform trend on Monday. In Delhi, 22-karat gold was available at Rs 9,290 per gram and 24-karat gold at Rs 10,133 per gram. Prices in Mumbai, Pune, Bengaluru, Hyderabad, and Chennai stood at Rs 9,275 per gram for 22-karat and Rs 10,118 per gram for 24-karat. Ahmedabad and Indore quoted slightly higher rates, with 22-karat gold at Rs 9,280 and 24-karat at Rs 10,123 per gram. Lucknow matched Delhi’s prices, trading at Rs 9,290 for 22-karat and Rs 10,133 for 24-karat gold.

As global uncertainty lingers, gold’s role as a hedge against inflation and a store of long-term value is expected to keep demand strong. For buyers in Kolkata, today’s steady pricing provides a measure of predictability, even as the outlook ahead hinges on both domestic policy shifts and international economic cues.

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