Gold prices in Lucknow hit fresh record highs on Friday, a day ahead of Dhanteras, as festive shoppers rushed to jewellers despite soaring rates. The surge aligns with a global rally in the precious metal, underpinned by geopolitical tensions and expectations of softer monetary policy from the US Federal Reserve.
In Lucknow, 22-karat gold was priced at Rs 12,185 per gram, while 24-karat gold stood at Rs 13,292 per gram. The spike in prices came amid continued enthusiasm for gold jewellery and coins, a traditional purchase ahead of the Diwali festival. Local retailers noted strong pre-festival sales, citing cultural sentiment and the perception of gold as a safe investment.
India’s domestic prices remain above international benchmarks because of duties, GST, and local surcharges, making gold purchases relatively expensive. Nevertheless, buyers in Lucknow appeared undeterred, encouraged by long-term expectations of sustained price growth.
Global Factors Supporting Rally
Motilal Oswal Financial Services Ltd (MOFSL) said that gold’s rally has been fuelled by a combination of economic uncertainty, fiscal challenges, and consistent demand from central banks. “Gold’s stellar rally reflects a confluence of macro shifts, from fiscal uncertainty and a softer dollar to strategic diversification by central banks,” said Manav Modi, Analyst, Commodities & Currencies, MOFSL.
The brokerage expects prices to test $4,500 per ounce internationally, with domestic rates potentially heading towards Rs 1.35 lakh per 10 grams in the long term. The ongoing rally has already pushed gold up more than 50 per cent this year, supported by a weaker dollar index and strong Asian demand.
MOFSL data shows central banks bought nearly 600 tonnes of gold during the first nine months of 2025, while exchange-traded funds saw inflows of 450 tonnes — the highest in five years. India’s imports stood at about 300 tonnes of gold and 3,000 tonnes of silver by the third quarter, reflecting robust demand despite high costs.
Silver has also been on a strong upward trajectory, with prices gaining over 60 per cent year-to-date and projected to touch Rs 2.3 lakh per kilogram. The metal’s industrial usage in solar panels and electric vehicles has tightened supply, driving a sustained rally.
With Dhanteras and Diwali celebrations underway, jewellers in Lucknow expect continued enthusiasm for gold buying. Historically, gold prices have risen in seven out of the past ten Diwali seasons, reinforcing optimism among both consumers and traders.
