Gold prices in Lucknow softened on Monday, tracking global cues as the US dollar strengthened and investors turned cautious ahead of key central bank policy signals. The city witnessed a slight dip in rates even as festive buying remains steady. Jewellers reported moderate footfall as consumers awaited further price corrections before making new purchases.
India continues to be one of the largest consumers of gold globally, with imports playing a dominant role in meeting domestic requirements. Recycled gold accounts for only a limited portion of total supply, making India highly sensitive to global price movements and currency fluctuations.
Exchange Rate and Investor Sentiment Key Drivers
Since international gold transactions are denominated in US dollars, movements in the rupee significantly impact domestic gold rates. A weaker rupee pushes up import costs, translating to higher prices for local buyers, while a stronger rupee tends to cap gains. Economists note that the recent volatility in the dollar index has amplified short-term uncertainty for gold prices.
Globally, bullion prices are shaped by a complex mix of macroeconomic indicators, including interest rate expectations, bond yield movements, and geopolitical developments. Despite temporary corrections, gold remains a safe-haven investment that attracts investors during times of uncertainty. Recent signals from the US Federal Reserve hinting at a cautious policy stance have also contributed to price movements in the international market.
Gold Rates in Lucknow and Other Cities
In Lucknow, 24-karat gold (999 purity) was priced at Rs 12,463 per gram, while 22-karat gold stood at Rs 11,425 per gram. The modest decline aligns with the broader trend seen across Indian markets, with prices in cities such as Delhi, Mumbai, and Chennai also easing marginally. In Kolkata, 24-karat gold was trading at Rs 12,448 per gram, while in Hyderabad, the rate was identical.
Traders in Lucknow said that gold demand is expected to pick up again as the wedding season approaches. Seasonal buying and a potential softening of the dollar could help stabilise local rates in the coming weeks. Market experts suggest that while short-term corrections may continue, long-term demand for gold remains firm owing to its cultural importance and inflation-hedging properties.
Gold’s Role as a Safe Asset Persists
Even as global conditions shift, gold continues to be viewed as a reliable store of value. Analysts highlight that Indian households are likely to sustain steady investment in gold, especially amid volatility in other asset classes. Though prices eased on Monday, overall sentiment towards the metal remains positive. The outlook for gold in Lucknow remains broadly stable, supported by enduring household demand and its deep-rooted cultural significance.
