Gold and silver prices fell in Kolkata on Monday, surprising investors despite rising global tensions and soaring crude oil prices linked to the conflict in West Asia.
The geopolitical situation in the region has become unstable following the war involving the United States, Israel, and Iran. As a result, crude oil prices in the international market have crossed 100 dollars per barrel. However, the prices of gold and silver moved in the opposite direction, falling in both international and domestic markets.
After declining on Saturday, the prices of the two precious metals dropped again in Kolkata's market on Monday.
Gold prices fall in Kolkata
According to data from the West Bengal Bullion Merchants and Jewellers Association, the price of 24-carat gold in Kolkata decreased by Rs. 1,950 per 10 grams on Monday.
The price of 22-carat jewellery gold also dropped by Rs. 1,850 per 10 grams in the city.
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The updated prices in Kolkata (excluding tax) are:
Pure gold bar (24-carat): Rs. 1,59,450 per 10 grams
Pure gold bar (retail): Rs. 1,60,250 per 10 grams
Hallmarked jewellery gold (22-carat): Rs. 1,52,300 per 10 grams
The decline has drawn attention in the bullion market as gold usually rises during global conflicts and economic uncertainty.
Silver prices also decline
Silver prices also recorded a significant fall in the Kolkata market on Monday. The price of silver dropped by Rs. 4,400 per kilogram.
The current retail price of silver stands at Rs. 2,63,450 per kilogram, according to the bullion association.
Market experts noted that customers may have to pay more than the listed prices when purchasing jewellery.
This is because additional charges are applied at the retail level. A Goods and Services Tax (GST) of 3 percent is levied on gold purchases. In addition, jewellery-making charges are added to the base price.
These making charges vary from shop to shop and can increase the final cost for buyers.
Despite the drop in prices, traders said the market remains cautious as global developments in West Asia continue to affect commodity prices and investor sentiment.
