Gold prices in Kolkata continued to fall on Tuesday, mirroring the weakness seen in international markets as investors gravitated towards riskier assets. Saumil Gandhi, Senior Analyst – Commodities at HDFC Securities, commented, “Gold resumed trading on a weaker note on Tuesday as signs of easing US-China trade tensions have increased investors’ interest in riskier assets, creating a negative impact on precious metals.”
City-Wise Prices and Market Context
In Kolkata, the current rate for 24-karat gold (999 purity) is Rs 12,246 per gram, while 22-karat gold (916 purity) is priced at Rs 11,225 per gram. The softening prices reflect global cues and local currency dynamics. As India continues to depend heavily on gold imports, fluctuations in the rupee-dollar exchange rate have a direct bearing on local retail prices. In eastern India, Kolkata remains one of the largest markets for gold jewellery, and price changes here often mirror national trends, making it a key indicator of retail sentiment.
Gold’s price movement is also influenced by macroeconomic indicators such as bond yields, inflation expectations, and policy signals from central banks. A stronger rupee and stable crude oil prices have collectively contributed to the ongoing weakness in gold. Meanwhile, improved global equity market sentiment has diverted capital flows away from safe-haven assets like gold.
Broader Economic Trends Weigh on Sentiment
On the global stage, easing tensions between major trading powers and an uptick in equity market confidence have curbed the appeal of safe-haven assets. Analysts believe that while short-term sentiment for gold remains subdued, the metal’s long-standing role as a hedge against market volatility persists. Market participants in Kolkata say jewellery demand has been steady but not particularly strong, as customers await further price corrections before making large purchases.
At the same time, India’s reliance on imported gold keeps domestic prices sensitive to global market shifts. With investors turning towards equities and fixed-income instruments, near-term corrections in gold may continue. However, experts suggest that any renewed geopolitical uncertainty or inflationary pressure could once again revive demand for the yellow metal. Additionally, as the wedding season approaches, retailers in Kolkata expect fresh demand to lend some stability to prices, even if the broader trend remains subdued for now.
