Lucknow recorded a sharp rise in gold prices today (Thursday), echoing the broader national trend. Prices of 22-karat gold in the city touched Rs 9,245 per gram, while 24-karat gold (999 purity) climbed to Rs 10,090 per gram.
The gains coincide with strong moves in both domestic and international markets. On the MCX, October gold futures scaled an all-time high of Rs 1,02,250 per 10 grams on August 8. Globally, the precious metal touched $3,534.10 per ounce a day earlier, and Ventura Securities projects it could advance further to $3,600 before the year ends.
Investment Demand at the Core of the Rally
The rally is being underpinned by a mix of geopolitical uncertainty, weak US economic data, and investor preference for safe-haven assets. Ventura Securities explained, “Gold retains upside potential with pronounced volatility, supported by weaker US growth, sustained pressure on the US dollar index, trade frictions and heightened geopolitical risks.”
Global demand is also on the rise. The World Gold Council’s data shows that second-quarter demand increased 3 per cent year-on-year to 1,249 tonnes, equivalent to $132 billion. Much of this came from institutional buyers, with ETFs leading the charge.
ETF inflows rose sharply, with holdings up 16 per cent to 3,616 tonnes by June 30. Assets under management surged 64 per cent to $383 billion, underlining the growing investor conviction in gold’s defensive appeal.
Domestic Trend Reflects Strong Appetite
India, the world’s second-largest gold consumer, has kept pace with these international flows. Domestic gold ETFs recorded a 42 per cent increase in holdings to 66.68 tonnes. Assets under management nearly doubled to Rs 64,777 crore. Investor accounts rose 41 per cent to 76.54 lakh, marking a 317 per cent increase over the past four years.
In cities such as Lucknow, where gold buying is closely associated with weddings and festivals, the surge in digital adoption has opened new opportunities. Younger investors are embracing ETFs and fractional ownership, even as households continue to prioritise physical jewellery.
The metal’s track record remains compelling. Over the past two decades, it has posted positive annual returns in 14 calendar years. More recently, in the last three years, it has averaged 23 per cent annual returns, compared with 11 per cent for the Nifty 50.
For investors and households in Lucknow, the latest rally highlights gold’s enduring dual role — a trusted store of value and an integral part of cultural and social traditions.
