Why The Yellow Metal Still Shines Bright

Kolkata witnessed firm gold prices on Monday, with the yellow metal continuing its upward march as both global and domestic factors boosted demand. The rate for 22-karat gold in the city stood at Rs 9,705 per gram, while 24-karat gold, often referred to as 999 gold, was priced at Rs 10,588 per gram.

India, the world’s second-biggest gold buyer after China, depends overwhelmingly on imports to satisfy its appetite for the metal. Only a small fraction of the supply is met through recycled gold. Since international trade in gold is denominated in US dollars, any swings in the rupee-dollar exchange rate quickly reflect in local valuations. Added to this are import duties, Goods and Services Tax (GST), and state levies, which together create regional price variations.

Cultural and Economic Relevance in India

Gold’s value in India is not purely financial. For households across Kolkata and the rest of the country, the metal represents prosperity, wealth, and security. Its role in weddings, festivals, and religious observances makes it indispensable in daily life. Moreover, in times of inflation or financial uncertainty, gold is considered a safe asset, offering protection when other investments falter.

On the global stage, bond yield movements, monetary policy decisions, and investor confidence exert significant pressure on prices. A weakening US dollar often gives bullion a lift, while higher bond yields and tighter monetary policy can restrict gains. These crosscurrents keep India’s market tied closely to international developments.

Broader National Snapshot

In addition to Kolkata, gold rates across major Indian cities showed strength. In Delhi, 22-karat gold was priced at Rs 9,720 per gram and 24-karat at Rs 10,603. Mumbai, Bengaluru, Pune, Hyderabad, and Chennai all saw similar trends, with prices holding at Rs 9,705 per gram for 22-karat and Rs 10,588 for 24-karat. Ahmedabad recorded slightly higher rates at Rs 9,710 and Rs 10,593 per gram, while Indore matched closely at Rs 9,710 and Rs 10,591 per gram.

In Lucknow, buyers faced one of the higher price points in the country, with 22-karat gold at Rs 9,720 per gram and 24-karat at Rs 10,603.

At a time of continued global economic uncertainty, gold remains a preferred choice for long-term wealth preservation, offering both emotional value and financial resilience.

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