Gold rates in Kolkata stayed firm on Wednesday, with 22-karat gold priced at Rs 9,290 per gram and 24-karat gold (999 gold) at Rs 10,135 per gram. The stability in prices mirrors the broader domestic bullion market, even as global gold trends have displayed a degree of divergence.
Last week, gold futures for October delivery jumped by Rs 971 or 0.98 per cent on the Multi-Commodity Exchange (MCX). On the international stage, COMEX gold futures surged by $51 or 1.52 per cent to settle at $3,413.80 per ounce on Saturday. Analysts attribute the bullish momentum to expectations of an interest rate cut by the Federal Reserve and a weaker US payrolls report.
Pranav Mer, Vice President, EBG, Commodity & Currency Research at JM Financial Services, explained: “In the week ahead, gold prices may continue to trade steady but with a positive bias as focus now will turn on the impact of the US trade tariffs in the American economy and likely trade disruption in the global market as most countries would be looking to either negotiate the trade terms or look for an alternative market to sell their products or services. Also, very few data are lined up in the week, which means that volatility may increase in the coming trading sessions.”
Factors Driving Demand for Gold in India
The domestic market has been influenced by the rupee’s depreciation, cushioning the correction seen globally. Prathamesh Mallya, DVP-Research, Non-Agri Commodities and Currencies at Angel One, noted: “MCX gold prices made highs of Rs 1,00,410 per 10 grams and corrected lower towards Rs 98,047 per 10 grams, down by nearly 2.5 per cent. The fall in gold prices was lower as compared to the global bullion prices on account of rupee depreciation by around Rs 86.5 to Rs 87.5 against the US Dollar in the same time period.”
Domestic buying has also provided support. NS Ramaswamy, Head of Commodities & CRM at Ventura Securities, pointed out that “India’s domestic gold had generated physical buying after a pullback in prices from Rs 1,00,555 per 10 grams last week to Rs 97,700 per 10 grams.”
With global tensions rising, including US tariffs on Indian imports and wider trade disruptions, analysts expect gold in Kolkata and other major Indian cities to maintain a positive bias in the short term, as investors look for safe-haven assets.
