Kolkata Gold Prices Fall Slightly As Futures And Global Demand Soften

Gold prices in Kolkata saw a marginal decline on Wednesday, reflecting the ongoing softness in both domestic and global bullion markets. The price of 22-karat gold in the city is currently quoted at Rs 9,000 per gram, while 24-karat gold, also known as 999 purity, is being sold at Rs 9,818 per gram.

This movement mirrors a broader bearish trend in gold prices across India, with other key cities such as Mumbai, Chennai, Bengaluru, and Hyderabad also reporting similar rates. In Lucknow and Delhi, prices stood slightly higher at Rs 9,015 for 22K and Rs 9,833 for 24K gold.

Futures Contracts and International Cues Continue to Weigh on Sentiment

On the Multi Commodity Exchange (MCX), gold futures for August delivery dropped by Rs 386 to settle at Rs 96,086 per 10 grams. This 0.4 per cent fall was recorded on a trading volume of 12,436 lots. Market experts have linked the decline to a combination of weak physical demand and lacklustre global indicators.

In international markets, gold futures were trading lower by 0.56 per cent at $3,298.40 per ounce in New York. Analysts point to investor caution ahead of upcoming US economic data as a key factor dragging down precious metal prices. In addition, slower retail demand in physical markets has further contributed to the softness in gold.

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Currency Movement, Import Duties Shape Local Rates

India, which ranks as the second-largest gold consumer globally after China, relies heavily on imports to meet its domestic demand. Since international gold prices are denominated in US dollars, fluctuations in currency exchange rates tend to have a direct impact on Indian retail prices. Local taxes, including import duties and Goods and Services Tax (GST), along with state-level levies, also play a critical role in determining final consumer rates.

In cities like Ahmedabad and Indore, 22-karat gold was seen at Rs 9,005, while 24-karat gold touched Rs 9,823. Despite recent dips, gold remains a preferred investment, especially during economic uncertainty, given its traditional role as a hedge against inflation and a reliable store of value.

As investors monitor key macroeconomic signals globally, gold prices in Kolkata and elsewhere are likely to remain sensitive to both domestic and international developments.

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