Gold Rate Today: Gold and Silver on New High, Record Prices and Rising Demand Stir Market

Gold and Silver Rate: Precious metals have seen a renewed surge in the domestic market this week. Positive signals from the international market and an improvement in domestic demand were clearly reflected in trade across the Lucknow division and the entire North India. In Lucknow, the price of 24-carat gold reached ₹1,25,000 per 10 grams, while silver was seen trading at ₹1,55,500 per kilogram. The onset of the festive and wedding season, global economic uncertainty, and investors' desire for safe investments further strengthened this rise.

Increased Activity in Bullion Markets

According to local bullion traders, customer footfall has increased in recent days. There has been a surge in inquiries for gold jewellery, particularly among women and traditional buyers. Jewellery showroom owners state that even though prices are high, gold remains the first choice for common people as a reliable investment. Bullion markets in Lucknow, such as Aminabad, Alankar Road, Chowk, and Alambagh, have been bustling with activity since morning.

The primary reason for the surge is believed to be the volatility observed in international markets. The Federal Reserve's future strategy regarding global interest rates, geopolitical tensions, and the weakening dollar have strengthened gold. Analysts suggest that whenever market volatility increases, investors prefer to buy gold as a safe-haven asset. This trend has also impacted India's domestic market.

Silver Prices Increased More Than Gold

The rise in silver prices is considered even more significant than that of gold. Increased industrial usage and strong domestic demand have pushed silver prices to new heights. In major markets of several smaller cities within the Lucknow division, such as Raebareli, Unnao, Sitapur, and Barabanki, silver prices were recorded around ₹1,55,000 per kilogram. Traders believe the upward trend in silver may continue as its consumption in the electronics and solar energy industries is constantly growing.

Industry experts believe that gold and silver may remain strong in the coming weeks. However, fluctuations in prices cannot be ruled out. The monetary policy of global banks, crude oil prices, and international political situations will determine the future direction. Several experts also noted that if the rupee continues to weaken domestically, gold prices in the Indian market could rise further.

Many investors still consider investing in gold a safe option despite these high prices. Demand for options like Gold ETFs, Sovereign Gold Bonds, and Digital Gold has also increased. The number of people buying digital gold has particularly grown among the youth, as it offers the convenience of easy, secure purchasing without the worry of storage. The market is also awaiting the next tranche of Sovereign Gold Bonds, as they offer both tax benefits and interest.

Concerns for Small Investors

However, the rising prices are also a cause for concern for small investors and ordinary families. Many families have indicated that they are limiting jewellery purchases this season or are considering buying lighter-weight ornaments. Jewellers have also reported an increased demand for lightweight jewellery, everyday wear designs, and 18-carat gold options.

Major jewellery retailers in Lucknow state that if prices remain this high, customers might turn towards alternative metal jewellery or silver ornaments. Silver jewellery, including bangles, anklets, and earrings, has always been popular, and now stylish and modern designs are rapidly gaining traction among the younger generation. Despite the high prices, customer preferences and needs continue to keep the market active.

Demand for Gold in Rural Areas

Demand for gold traditionally remains strong in rural areas as well. In the rural parts of the Lucknow division, many families still consider gold a symbol of long-term security and prestige. With improvements in agricultural income and stability in the rural economy, a slight increase in purchases is also being observed there.