Gold prices in Lucknow edged higher on Monday, reflecting the nationwide rise in the precious metal’s value. According to latest updates, 24-karat gold stood at Rs 12,332 per gram, while 22-karat gold was priced at Rs 11,303 per gram.
Currency Impact and Market Sentiment Shape Price Movement
India, the world’s second-largest gold consumer after China, continues to depend heavily on imports to meet its domestic demand. Although gold recycling and collection initiatives have been gaining ground, the share of recycled gold remains modest, keeping the nation reliant on international supply.
Given that gold is traded globally in US dollars, local prices in India tend to respond swiftly to any change in the rupee’s exchange rate. A weakening rupee typically increases import costs, pushing up prices for domestic buyers. Conversely, a firm rupee offers some cushion against steep price hikes.
Globally, gold prices are influenced by bond yields, central bank actions, and investor sentiment. The precious metal’s enduring reputation as a safe-haven asset ensures robust demand during times of inflation and financial instability, reinforcing its role as a store of value.
Local Demand Remains Resilient
Gold has retained its shine in Lucknow as consumers continue to buy steadily for weddings, festivals, and investment portfolios. Jewellers note that despite higher prices, footfall and enquiries remain consistent, indicating sustained consumer confidence in the yellow metal.
Across other cities, gold rates showed marginal variation. In Chennai, 24-karat gold stood at Rs 12,382 per gram; in Mumbai and Kolkata, it was priced at Rs 12,317 per gram. In Ahmedabad and Indore, the price was Rs 12,322 per gram for 24-karat gold.
Analysts believe that with global uncertainties still weighing on financial markets, gold will continue to serve as a preferred investment option for Indian households. The combination of currency volatility, inflation concerns, and changing monetary policies worldwide is expected to keep demand firm in the near term.
