Gold prices edged lower on Monday, with Kolkata buyers witnessing a slight decline in the cost of the yellow metal. The precious commodity, known for its role as a safe-haven asset, reflected subdued momentum in global markets as investors weighed international economic signals and domestic factors.
In Kolkata, the retail gold price for 22-karat stood at Rs 10,190 per gram, while 24-karat, commonly referred to as 999 gold, was available at Rs 11,117 per gram. The dip, although modest, comes against a backdrop of heightened global uncertainty, demonstrating how quickly Indian gold rates react to international cues.
Rupee Movements and Taxation Keep Prices Sensitive
India, the world’s second-largest gold consumer after China, depends heavily on imports to satisfy its domestic appetite. While recycled metal adds a small fraction, the bulk of the demand is covered through overseas purchases. As gold is traded globally in US dollars, the rupee’s fluctuations against the greenback directly impact Indian buyers.
For consumers in Kolkata, retail prices incorporate not just currency trends but also multiple tax layers. Import duties, the Goods and Services Tax (GST), and state-level charges together make up a significant portion of the final retail price. This structure leaves Indian gold particularly vulnerable to shifts in government policies as well as movements in foreign exchange rates.
International Cues Weigh on Bullion
The wider global sentiment also dictated the day’s price action. Internationally, bullion continues to take direction from US bond yields, central bank decisions, and safe-haven demand. Investors worldwide are closely tracking signals from the US Federal Reserve, with growing speculation around possible rate cuts in the months ahead.
Brent crude, the international oil benchmark, slipped marginally by 0.23 per cent to $69.51 per barrel, further influencing market sentiment. Asian stock markets showed mixed cues, with indices in South Korea, Hong Kong, and China opening higher, while Japan’s Nikkei remained under pressure.
Back home, the fall in gold prices comes even as Indian households maintain strong faith in the asset for wealth preservation and financial stability. With Foreign Institutional Investors (FIIs) offloading equities worth Rs 3,366.40 crore in recent trading sessions, gold continues to hold appeal as a defensive investment.
Amid these cross-currents, residents of Kolkata eye the slight dip in prices as an opportunity, though the trajectory of bullion in the coming weeks will depend heavily on both domestic policy cues and international market trends.
