Editor’s Note
This article highlights the ongoing rise in gold and silver prices in Lucknow, driven by global economic uncertainty and demand for safe-haven assets. While experts suggest the upward trend may persist, they also caution about potential short-term corrections due to profit-taking.
In the Lucknow division’s bullion market, gold and silver prices are witnessing a continuous surge. Amid global economic uncertainties, fluctuations in the US dollar, and rising demand for safe-haven investments, precious metals have once again captured the attention of investors and general buyers. Market experts say this trend may continue in the near future, although intermittent profit-taking could lead to minor corrections. According to the latest update from the Sarafa Association, the retail prices for 10 grams of gold are as follows (GST, making charges, and hallmarking fees are additional).
24 Carat Gold: ₹1,70,000
22 Carat Gold (92% purity): ₹1,56,400
18 Carat Gold (76% purity): ₹1,29,200
Silver (Jewelry): ₹3,78,200
1. Global Economic Uncertainty: Worldwide geopolitical tensions, recession fears, and volatility in financial markets are driving investors towards safe-haven options. Gold is traditionally considered a “safe haven,” hence its demand is rising.
2. Dollar and Interest Rates: Weakness in the US dollar and uncertainty surrounding interest rates are also supporting gold prices. When interest rates are expected to remain stable or decline, investing in gold becomes attractive.
3. Festive and Wedding Season: Social occasions are a major driver of demand in the local market. Purchases of jewelry increase during the wedding and festival seasons, pushing prices higher.
4. Industrial Demand for Silver: Silver is used not only in jewelry but also in electronics, solar panels, and medical equipment. Rising industrial demand is providing strength to its prices.
According to experts, the rally in gold could be a positive signal for long-term investors, but short-term fluctuations cannot be ruled out. If global conditions remain unstable, prices could rise further. A sudden positive economic development could also lead to a price correction. Silver tends to be more volatile than gold, so the risk is also higher.
• Always buy hallmarked jewelry.
• Be sure to get a bill.
• Get clear information upfront about making charges and wastage.
• Coins/bars may be a better option for investment.
• Compare prices at different shops.
This question is on every buyer’s mind. Seeing the high prices, many are waiting, while some believe prices could rise further. Market analysts suggest that a phased investment strategy (like an SIP) might be better than a large lump-sum purchase.
Gold and silver are indeed emotional and traditional investments, but they are not free from market risk. A sudden price drop is also possible. Therefore, investing without a plan can be detrimental. Always consult your financial advisor before investing.
