Gold Prices Reach New High in Kolkata

22 Karat Gold Surpasses Rs. 6400 per Gram

Strong Demand and Weakening Rupee Drive Price Increase

In a significant development, the price of 22 carat yellow gold has soared to Rs. 6470 per gram in Kolkata as of August 5, 2024. This represents a substantial increase compared to previous rates and highlights the ongoing upward trend in gold prices.

According to industry analysts, the surge in gold prices is primarily driven by two factors: strong demand and a weakening Indian Rupee against the US Dollar. Gold has traditionally served as a safe haven asset during times of economic uncertainty, and the ongoing geopolitical tensions and global economic headwinds have prompted investors to seek refuge in the precious metal.

The depreciating Rupee has further amplified the impact of global gold price movements on the domestic market. When the Rupee weakens, it becomes more expensive for Indian importers to purchase gold from international markets, ultimately leading to higher prices for consumers.

This price increase is expected to have a significant impact on the Indian jewelry market, as gold is widely used in traditional ornaments and as a form of investment. Jewelers across the country have reported a surge in demand for gold, particularly during the upcoming festive season.