Gold Rate in Lucknow

Lucknow, the capital of Uttar Pradesh is popularly known as a ‘golden city’ housing over 4 million people that share an immense love for gold. While an increase in demand is largely known to affect every day changing gold rates in Lucknow, the below factors too have a role to play.

• The rate of inflation: Since gold has historically proven to be a hedge against inflation, savvy investors invest in gold when the inflation trend rises upwards. When inflation increases, the demand for gold rises, which eventually leads to the gold rates going sky high.

• Value of the US dollar: The value of the US dollar is inversely related to gold rate today in Lucknow. When the US dollar is strong, gold rates in India decrease and when the US dollar weakens, gold rates in India increase. This is because people have a tendency to invest in dollar when it is strong and when the dollar weakens, people start investing in gold coins and bullions.

• Bank interest rates: Gold does not offer an individual steady interest rate like financial products offered by a bank. But when banks decrease the interest rates on FDs and other saving accounts, people rush to invest in gold as it offers good returns in the long term. Thus, lower interest rates equate towards great attraction for gold.

• Supply vs Demand: Even a slight imbalance in the supply vs demand ratio of gold affects the gold prices in Lucknow. This is because gold is supplied in limited quantities in Lucknow and is high in demand during the times of festivals and weddings. Production costs: If gold mining companies in Uttar Pradesh increase gold production costs, then the gold rate today is largely affected.
• Heavy import duty: Much like other cities of India, gold is an imported commodity in Lucknow. Hence, any change in the cost of import leads to an increase in the price of gold in Lucknow.

Just because it is yellow doesn’t mean its pure gold. While buying gold in Lucknow, you need to keep the below things in mind to ensure that your gold purchase process is pure and transparent.

• Check for the weight: Gold jewellery and other items are sold in Lucknow on the basis of its weight. Precious stones are often added to gold jewellery to enhance its beauty. However, this ends up making the jewellery heavier in the process which means, in the end, you will end up paying a high amount while purchasing the jewellery.

• Sales: Gold purchase peak during the season of festivals and weddings, which leads to an increase in the gold rate. Cost per gram: While buying gold in Lucknow, always check on the cost per gram rate of the jewellery. Doing this gives you a fair idea about how much you will have to shell out to buy the desired jewellery item.

• Buyback: Most jewellers in Lucknow offer buy-back option which means that one can exchange old jewellery to buy a new one. However, if your jeweller offers this option, then you need to know that the value of gold remains the same, no matter what is its price.

• Gold purity: While buying gold in Lucknow, check for the purity. Checking the gold purity gives you the exact content of gold you are buying. Gold purity is defined in various karats i.e. 24K, 22K, 18K, 14K, 10K. 22K gold contains mix of other metals, while 24K gold contains pure gold content.

• BIS hallmark: It is advisable to not buy a gold item that does not have a BIS hallmark. BIS hallmark denotes that the gold item you are buying is pure and is of high quality.