Gold prices in Kolkata inched higher on Friday, offering investors a modest reprieve after a spell of weakness that had weighed on the market. The city’s 24-karat gold was quoted at Rs 12,546 per gram, while 22-karat gold fetched Rs 11,505 per gram. The marginal recovery echoed broader national and international influences that briefly softened selling pressure earlier in the week.
Why imports and taxes matter for Kolkata buyers
Kolkata, like other Indian markets, relies heavily on imports to meet its gold requirements, the country remains the second-largest consumer globally after China. Recycled metal makes up only a limited share of supply, meaning domestic prices remain closely tied to global spot rates and the rupee-dollar exchange rate. Any depreciation in the rupee therefore raises the landed cost of gold for retailers in West Bengal, contributing to price increases at retail counters.
On top of the global spot price, Kolkata consumers face local premiums created by import duties, Goods and Services Tax (GST) and state charges. These levies widen the gap between international benchmarks and the prices that Kolkata buyers ultimately pay for bullion and jewellery, making local market movements particularly sensitive to policy and currency shifts.
International drivers and local market response
Globally, gold’s small bounce on Friday was shaped by falling bond yields, expectations of potential central bank rate adjustments and a marginally softer US dollar. Lower interest rates reduce the opportunity cost of holding gold, while a weaker dollar often spurs fresh buying interest among international investors. These conditions supported a limited rebound in Kolkata markets after days of downward pressure.
Jewellers in the city reported steady seasonal demand for jewellery purchases, which cushioned the market somewhat despite speculative selling from traders. Analysts said that while short-term volatility remains possible, physical demand from households for weddings and festivals tends to stabilise prices locally, even as investment flows through ETFs and sovereign bonds react to global cues.
Kolkata’s slight recovery also reflected the technical buying that often occurs when prices dip to levels seen as attractive by traditional buyers. Such buyers in eastern India frequently view gold as a long-term store of value and tend to increase purchases on weakness, a factor that can arrest sharp declines.
Comparing Kolkata with other metros
Across other major Indian centres, Chennai’s 24-karat rate stood at Rs 12,589 per gram, while Delhi and Mumbai hovered around Rs 12,546 for the same purity. Lucknow recorded a marginally higher 24-karat rate at Rs 12,561. These differences in city-level pricing are driven largely by local premiums and differing demand-supply conditions.
For Kolkata buyers, the outlook depends on a mix of global monetary policy moves, the trajectory of the rupee-dollar rate and domestic consumption patterns. While short-term gyrations are likely, gold’s long-established role as a hedge against inflation and currency risk means it remains integral to household portfolios in the city.
Despite the recent volatility, the slight recovery on Friday suggests that demand resilience and supportive global cues could sustain interest in the yellow metal in the near term. Jewellery buyers and investors are therefore advised to monitor both international developments and local premiums before making fresh purchases.
