Kolkata Gold Prices Soar, See What Is Driving The Rally

Kolkata witnessed a surge in gold prices today (Thursday), reflecting the broader bullish momentum in the domestic and international markets. As of the latest update, 22-karat gold in the city is priced at Rs 9,230 per gram, while 24-karat gold (999 purity) stands at Rs 10,075 per gram.

This local rise comes against the backdrop of record-setting gains in both global and Indian markets. On the Multi Commodity Exchange (MCX), the most active October futures contract reached an all-time peak of Rs 1,02,250 per 10 grams on August 8. Globally, gold touched an unprecedented $3,534.10 per ounce on August 7, and analysts at Ventura Securities believe it may climb further to $3,600 before the end of December.

Global Factors Fuel the Rally

The escalation in prices is closely tied to international trends. Ventura Securities highlighted that “Gold retains upside potential with pronounced volatility, supported by weaker US growth, sustained pressure on the US dollar index, trade frictions and heightened geopolitical risks.”

Demand dynamics are strengthening the rally further. Data shows that global gold consumption in the second quarter of 2025 rose 3 per cent year-on-year to 1,249 tonnes, worth $132 billion. The value growth, at 45 per cent, indicates a strong appetite from both retail and institutional buyers.

ETF inflows also underline the renewed investment rush. Global holdings of gold ETFs rose 16 per cent to 3,616 tonnes by the end of June, while assets under management grew 64 per cent to $383 billion.

India Mirrors Global Sentiment

The domestic gold investment landscape is equally robust. Indian gold ETFs recorded a 42 per cent jump in holdings to 66.68 tonnes during the year to June 30. Assets under management nearly doubled to Rs 64,777 crore, supported by a 41 per cent rise in investor accounts, which now stand at 76.54 lakh.

Experts point out that younger investors are increasingly gravitating towards digital platforms, fractional ownership, and ETFs rather than purely physical gold. At the same time, traditional jewellery demand remains steady, with hybrid buying through online and offline channels gaining popularity.

Historical performance also strengthens gold’s position as an asset class. Over the past 20 years, the metal has delivered positive annual returns in 14 years, while in the last three years, it averaged 23 per cent returns annually, outperforming the Nifty 50’s 11 per cent.

For households in Kolkata, where gold has long been a preferred asset for investment and occasions, today’s price surge underlines its dual role as both a cultural symbol and a hedge against uncertainty.

business