Gold Prices Decline In Lucknow, Reflecting Nationwide Weakness

In the Uttar Pradesh capital, 22-karat gold was priced at Rs 9,025 per gram on Monday, and 24-karat gold, also referred to as 999 purity, dropped to Rs 9,844 per gram.

With strong economic data from the US reducing the likelihood of an immediate rate cut, analysts are expecting gold prices to stay under pressure in the short term.

Source : PTI

Gold prices in Lucknow dipped on Monday, in line with the broader downtrend observed across Indian markets. Despite being marginally higher than rates in cities such as Kolkata and Mumbai, the bullion market in Lucknow has not been immune to recent volatility.

In the Uttar Pradesh capital, 22-karat gold was priced at Rs 9,025 per gram on Monday, and 24-karat gold, also referred to as 999 purity, dropped to Rs 9,844 per gram.

This minor correction mirrors movement in other metro cities such as Chennai, Pune and Bengaluru, where 22k gold is trading at Rs 9,010 per gram and 24k gold stands at Rs 9,829 per gram. In Delhi, too, prices followed a comparable trajectory, despite staying higher than average rates seen in the eastern and southern regions of India.

Traders Await US Tariff Decision Amid Global Uncertainty

Investor caution remained high as  markets approached a critical deadline. On July 9, a 90-day pause on additional US tariffs will expire, and India, among other nations, could face a steep 26 per cent duty on certain exports. The looming decision has heightened uncertainty across commodities, including gold, often seen as a safe-haven asset.

“Going ahead, the focus will be on the interest rate cuts by key central banks, especially US Fed Reserve, the outcome of trade negotiation between US and its trading partners, incoming global economic data, which could impact the near-term gold prices,” said Pranav Mer, Vice President, EBG, Commodity & Currency Research at JM Financial Services Ltd.

Gold Under Pressure, But Long-Term Demand Intact

With strong economic data from the US reducing the likelihood of an immediate rate cut, analysts are expecting gold prices to stay under pressure in the short term. “The short-term outlook favours consolidation and corrective upward movements, followed by a likely continuation of the broader downward trend,” noted N S Ramaswamy, Head of Commodities Desk and CRM at Ventura.

Nonetheless, physical gold demand has remained steady. Central banks collectively added 20 tonnes of gold to their reserves in May, reinforcing the underlying bullish tone in the longer term. “Dollar weakness has been a key part of gold prices rising in 2024 as well as in 2025. This trend will continue for the rest of the year,” said Prathamesh Mallya, DVP, Research, Non-Agri Commodities and Currencies at Angel One.