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    Gold Prices In Kolkata Ease Marginally Amid Global Market Cues

    4 days ago

    Kolkata’s gold prices softened slightly on Friday, in line with a minor correction observed across major Indian cities. The city’s jewellery market, which is traditionally active in the run-up to festive purchases, recorded 22-karat gold at Rs 9,280 per gram, while 24-karat gold (999 purity) was quoted at Rs 10,124 per gram.

    The decline comes as global commodity trends and currency movements weighed on investor sentiment. As gold is traded internationally in US dollars, fluctuations in the rupee-dollar exchange rate remain a critical driver of local prices.

    Currency Trends and Domestic Tariffs Remain Key Drivers

    India, ranked second only to China in gold consumption, relies heavily on imports to meet its domestic demand, with recycled gold forming a very small share of total supply. This dependency makes local prices sensitive to foreign exchange movements. A weaker rupee typically pushes prices higher, while any strengthening of the currency can ease rates.

    In addition to currency factors, import duties, Goods and Services Tax (GST), and state-level levies also shape the final price in Kolkata. While gold is often sought as a hedge against inflation and economic instability, its valuation is also influenced by changes in bond yields, shifts in global investor sentiment, and key central bank policy decisions.

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    National Price Picture Reflects Similar Trends

    Price levels across other cities were largely in step with Kolkata. Delhi and Lucknow reported Rs 9,295 per gram for 22-karat gold and Rs 10,139 for 24-karat. Mumbai, Bengaluru, Chennai, Hyderabad, and Pune quoted Rs 9,280 and Rs 10,124 for 22- and 24-karat respectively, while Ahmedabad and Indore saw a marginally higher rate of Rs 9,285 and Rs 10,129.

    For buyers in Kolkata, the slight pullback offers an opening for purchase, though analysts caution that volatility remains a feature of the market. With factors such as potential changes in US interest rates and global trade developments in play, gold prices could shift quickly in the coming weeks.

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