Gold prices in Lucknow surged on Wednesday, reaching fresh all-time highs ahead of Dhanteras. The MCX recorded gold futures above Rs 1.27 lakh per 10 grams, reflecting heightened demand as festive purchases accelerate. In Lucknow, 22-karat gold is trading at Rs 11,830 per gram and 24-karat gold at Rs 12,904 per gram, signalling strong investor interest in the northern region. Local jewellers report that consumer preference for high-quality 24-karat gold has increased this year, with many opting for investment-grade pieces over pure decorative jewellery.
The domestic price surge coincides with international gains. Spot gold climbed 0.4 per cent to $4,155.99 per ounce, while US gold futures for December delivery were up 0.3 per cent at $4,174.30 per ounce. Analysts point to a combination of factors including ongoing US-China trade tensions, expectations of Fed rate cuts, and safe-haven demand as key drivers. Additionally, domestic liquidity inflows and sustained interest from high-net-worth investors are contributing to the upward momentum in the local market.
Silver Also Gains Momentum
Silver prices rose in tandem, opening at Rs 1,59,800 per kg and reaching Rs 1,61,418 during intra-day trade. MCX gold futures opened at Rs 1,26,915 per 10 grams, representing a 0.52 per cent gain, and subsequently hit Rs 1,27,500. Early trade saw gold trading 0.46 per cent higher at Rs 1,26,835 per 10 grams, with silver up 0.52 per cent at Rs 1,60,333 per kg. Jewellery merchants in Lucknow highlight that consumer buying ahead of Dhanteras is fuelling increased demand, with many opting to purchase gold as both a long-term investment and a festive gift.
Market observers note that geopolitical uncertainties, policy easing expectations, and ongoing market volatility, including concerns over a potential US government shutdown, have strengthened gold’s safe-haven appeal. Federal Reserve Chair Jerome Powell indicated that interest rate decisions will be taken on a meeting-by-meeting basis, adding to speculation of upcoming rate cuts, which is further boosting demand. Experts suggest that this combination of global and domestic factors is likely to sustain bullish trends in gold prices through the festive season.
The renewed trade tensions between the US and China, including port fees and potential trade restrictions, are expected to keep investors favouring gold as a hedge against uncertainty, pushing prices to record highs and prompting a rush among local buyers to secure gold ahead of Dhanteras.
