Posted on May 13, 2025, by Niftynews
Gold Price in Lucknow has taken a dramatic plunge, dropping from a record high of nearly ₹1 lakh per 10 grams to ₹96,000 — a sharp fall that has captured the attention of buyers, jewellers, and investors alike. The decline comes amid a series of international and regional developments that are reshaping the market outlook.
Just last week, jewellers in Lucknow were reporting soaring gold prices, driven by global economic uncertainty, high demand, and geopolitical instability. But things have changed swiftly.
Global Factors Behind the Fall in Gold Price in Lucknow
Industry experts say the decline in Gold Price in Lucknow is not isolated—it reflects a broader trend influenced by macroeconomic changes.
One of the key drivers has been the easing of the US-China trade conflict. A breakthrough meeting between top officials of both nations in Switzerland resulted in a tentative agreement to halt tariff escalations, calming international markets.
Tanya Rastogi, Director at the Indian Bullions and Jewellers’ Association (IBJA), explains:
“Gold prices surged globally when the US dollar weakened. However, with positive developments in trade talks and no immediate signs of economic escalation, the pressure on gold as a safe-haven asset has lessened. This is impacting markets across India, including Lucknow.”
As global uncertainty decreases, demand for gold often dips, leading to price corrections like the one currently witnessed in Lucknow.
India-Pakistan Tensions Ease: Another Key Reason for the Price Fall
In addition to international trade agreements, regional stability in South Asia has had a calming effect on precious metal prices. In particular, recent diplomatic progress between India and Pakistan has contributed to investor confidence and a reduced demand for safe assets like gold.
Ravindra Nath Rastogi, General Secretary of the UP Sarafa Association and President of the Lucknow Sarafa Association, notes:
“Whenever geopolitical tensions rise, we see a spike in gold buying. Now that things are more stable, buyers are less anxious to stock up, and this naturally impacts the Gold Price in Lucknow.”
He added that prices may continue to trend lower in the short term if regional peace continues.
Local Market Trends: Is Wedding Season Losing Its Shine?
Interestingly, the fall in the Gold Price in Lucknow comes during the peak of the Indian wedding season—a time typically associated with high demand for gold jewellery. Yet jewellers in the city are reporting subdued consumer activity.
Adesh Jain, Vice President of the Chowk Sarafa Association, pointed out a clear shift in buying behavior:
“On May 8, gold was priced at ₹98,100 per 10 grams in Lucknow. By Monday, it dropped nearly ₹2,000. While prices are down, footfall hasn’t picked up the way we expected. Inflation and changing consumer priorities could be factors.”
Vinod Maheshwari, UP Coordinator of the All-India Jewellers and Goldsmiths Federation, also attributed part of the price fall to lackluster demand.
“Even with lower prices, buyers are cautious. It’s likely that people are waiting to see if prices drop further before making purchases,” he added.
What Does This Mean for Investors and Buyers in Lucknow?
For those considering buying gold, the current dip in prices presents a potentially attractive entry point. However, experts suggest that price movements in the coming months will depend heavily on international interest rate decisions and geopolitical developments.
Tanya Rastogi of IBJA adds,
“All eyes are now on the US Federal Reserve’s July meeting. If there’s a rate cut, we could see another rise in gold prices. For now, the market appears to be stabilizing, but caution is key.”
Analysts are also watching inflation trends and the performance of global stock markets, both of which tend to inversely impact gold prices.
Forecast: Will the Gold Price in Lucknow Drop Further?
There is cautious optimism among jewellers and financial advisors. If peace holds between India and Pakistan and the global economy continues to recover, gold may see moderate pricing in the weeks ahead.
“If no major disruptions occur and the demand remains as it is, gold prices may hover in the ₹95,000–₹97,000 range,” predicts Maheshwari.
However, gold has always been a volatile commodity. With election cycles, global wars, and financial instability still possibilities, any of these factors could quickly send prices soaring again.
Conclusion: A Golden Opportunity or a Waiting Game?
The current dip in the Gold Price in Lucknow offers both opportunity and uncertainty. Buyers seeking to invest in gold for weddings, gifting, or financial security may find this a good time to act, especially if predictions of further rate cuts by the Federal Reserve come true.
But for those with a long-term view, experts recommend a balanced approach—monitor the markets, assess global developments, and don’t rush into buying based solely on short-term dips.
As always, gold remains not just a precious metal, but a reflection of global and local sentiment.
