Gold prices in Kolkata dipped slightly on Wednesday, continuing to reflect the interplay between global benchmarks and domestic factors. As India remains the world’s second-largest consumer of gold after China, the country relies heavily on imports to meet local demand. Recycled gold contributes only a minor fraction of supply, making bullion prices highly sensitive to international movements and currency fluctuations.
On Wednesday, 22-karat gold in Kolkata was priced at Rs 10,575 per gram, while 24-karat gold (999 purity) was trading at Rs 11,537 per gram. These rates underscore the continuing influence of global market trends, particularly changes in the US dollar, which affects the rupee-dollar exchange rate and, consequently, the cost of gold for Indian buyers.
Factors Influencing Gold Prices in Kolkata
Domestic retail prices of gold are determined not only by international rates but also by multiple layers of taxation, including import duties, Goods and Services Tax (GST), and state-level levies. The combination of these taxes can make a notable difference in the price at which consumers purchase gold locally.
Globally, gold’s performance is closely monitored as a barometer of economic uncertainty. Its movements are influenced by bond yields, central bank monetary policies, and its traditional safe-haven appeal during times of geopolitical tensions or economic stress. Investors in Kolkata are keeping a close eye on these factors, particularly as market volatility persists in the run-up to the festive season.
Gold as a Safe-Haven Asset
Amid ongoing economic uncertainty, gold continues to be a preferred investment for those seeking financial security and long-term wealth preservation. Market analysts note that despite minor price fluctuations, gold remains a reliable hedge against inflation and currency depreciation. Kolkata’s jewellers report steady demand from buyers looking to secure their savings in the metal, with particular interest in 22-karat and 24-karat gold coins and jewellery.
For residents of Kolkata, these modest dips in gold prices may provide an opportune moment to purchase or invest, particularly ahead of traditional occasions where gold jewellery and coins are in high demand.
