Kolkata Gold Rates Fall As US Fed, Tariff Deadline Drive Market Mood

Gold prices in Kolkata slipped on Wednesday, mirroring the downturn seen in other major Indian cities. The rate for 22-karat gold stood at Rs 9,010 per gram, while 24-karat gold, commonly referred to as 999 gold, was priced at Rs 9,829 per gram. The trend reflected a decline in sentiment across key markets such as Mumbai, Chennai, Pune, and Bengaluru, where gold is quoted at similar levels.

However, prices were slightly higher in Delhi and Lucknow, where 22-karat gold stood at Rs 9,025 per gram and 24-karat gold at Rs 9,844 per gram. 

Traders Cautious Ahead of July 9 Tariff Deadline

Market participants remained on edge as the July 9 deadline approaches, marking the end of the 90-day suspension of additional tariffs by the US on several trading partners, including India. The possible imposition of a 26 per cent tariff on Indian exports could ripple through financial markets and influence safe-haven demand for gold.

"Going ahead, the focus will be on the interest rate cuts by key central banks, especially US Fed Reserve, the outcome of trade negotiation between US and its trading partners, incoming global economic data, which could impact the near-term gold prices," said Pranav Mer, Vice President, EBG, Commodity & Currency Research at JM Financial Services Ltd.

Also Read : US Extends Tariff Timeline; Trump Confident New Trade Deals Are Within Reach

Investors are also awaiting the minutes of the US Federal Reserve’s FOMC meeting, which could offer insights into future monetary policy direction.

Analysts expect continued pressure as strong US macroeconomic indicators dampen hopes of an imminent rate cut. “The short-term outlook favours consolidation and corrective upward movements, followed by a likely continuation of the broader downward trend,” said N S Ramaswamy, Head of Commodities Desk and CRM at Ventura.

Nonetheless, underlying demand remained strong, with central banks having added a net 20 tonnes of gold to their reserves in May. Prathamesh Mallya, DVP, Research, Non-Agri Commodities and Currencies at Angel One, noted, “Dollar weakness has been a key part of gold prices rising in 2024 as well as in 2025. This trend will continue for the rest of the year.”

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