KOLKATA: Gold prices in Kolkata hit an all-time high on Monday, breaching the ₹1 lakh mark per 10 grams as escalating tensions between Israel and Iran triggered panic buying among investors seeking safe-haven assets. By Monday afternoon, the price of 24-carat gold, inclusive of GST, surged to ₹1,03,000 per 10 grams — the highest ever recorded in the city.
Though prices dipped slightly by Tuesday morning to around ₹1,01,500 per 10 grams, local jewellers reported minimal orders, with customers holding back amid the uncertainty.
“The ongoing conflict in the Middle East has heightened global political risk, which is pushing investors towards gold,” said Rupak Saha, zonal member of the Gem and Jewellery Trade Council of India. “We saw similar trends during the Russia-Ukraine escalation. Since then, gold has been climbing steadily, and the Israel-Iran situation has only intensified the rise.”
In the past two months alone, gold prices have surged from ₹98,380 on April 17 to ₹1,01,500 on June 17. Notably, the ₹1 lakh threshold has been crossed three times in recent weeks, marking a historic shift in the bullion market.
Anargha Uttiya Chowdhury, partner at Anjali Jewellers, attributed the surge not only to geopolitical instability but also to institutional buying and a strong US dollar. “Bulk buying by large investors has added pressure. If the situation in the Middle East stabilises, we may see a slight correction in prices,” he said.
However, for jewellers already grappling with a sluggish market, the spike has worsened business prospects. “Compared to last year’s May-June period, our bookings have dropped by nearly 40%,” said Shubadip Roy, zonal committee member of the All India Gem and Jewellery Domestic Council. “The hardest hit are the artisans who now have no work. Though enquiries continue, very few are converting into sales.”
Suvankar Sen, MD and CEO of Senco Gold Ltd, believes this volatility is far from over. “Until geopolitical tensions ease, prices will continue fluctuating. We expect more buyers to make purchases in phases, anticipating further hikes. However, this trend could shift focus towards light-weight jewellery, which may soften overall sales volumes.”
With global uncertainty showing no signs of abating, industry insiders expect gold to remain volatile — and potentially move even higher — in the coming weeks.
