Kolkata witnessed a surge in gold prices on Tuesday as the precious metal reached unprecedented levels, driven largely by market expectations of an imminent US Federal Reserve interest rate cut. Investors are increasingly flocking to gold as a safe-haven asset, following softer-than-expected US labour market data that bolstered the possibility of monetary easing in the world’s largest economy.
On the Multi Commodity Exchange (MCX), gold futures for October delivery advanced by Rs 982 or 0.9 per cent, touching an all-time high of Rs 1,09,500 per 10 grams. The surge highlighted the strong momentum in both domestic and international bullion markets.
Jigar Trivedi, Senior Research Analyst at Reliance Securities, noted, “Gold hit a fresh all-time high, supported by mounting expectations of Federal Reserve interest rate cuts through year-end. Weak US jobs report last Friday led markets to price in three rate cuts this year.” Analysts also point out that ongoing geopolitical tensions are further strengthening gold’s appeal. Potential US sanctions on Russia, in response to Moscow’s actions in Ukraine, have reinforced demand for the metal. Additionally, the Trump administration’s recent exemption of gold and certain other metals from tariffs has lent further support to the market.
City-Wise Rates Reflect Strong Momentum
In Kolkata, the current rates for 22-karat gold stand at Rs 10,110 per gram, while 24-karat gold (commonly known as 999 gold) is priced at Rs 11,029 per gram. This represents one of the highest valuations in recent times, making it a notable milestone for domestic investors. Analysts say that gold continues to glitter amid ongoing economic uncertainties, offering a secure avenue for wealth preservation.
Market participants are closely monitoring upcoming US inflation and producer price data, expected later this week, for further guidance on the Fed’s monetary policy. The anticipation of interest rate cuts, coupled with low real yields in the US, has strengthened the case for gold as an attractive investment option. Economic and geopolitical uncertainties continue to drive demand for the yellow metal, cementing its role as a hedge against financial volatility.
As investors weigh their options in Kolkata, gold remains the preferred asset for those seeking both financial security and long-term wealth protection. Given the current trajectory, market watchers expect bullion to maintain its robust performance in the near term, provided global cues continue to favour a safe-haven shift.
