Gold prices in Lucknow, which had recently soared to around ₹1 lakh per 10 grams, have seen a steady decline over the past five days. On Monday, the price of the same quantity of gold dropped to ₹96,000 at Sarafa Market, signaling a shift in the market.
Jewellers in the city have offered varying explanations for this price drop, with many attributing it to the resolution of the tariff war between the U.S. and China. Others pointed to recent de-escalations between India and Pakistan, alongside lower demand, as contributing factors.
Tanya Rastogi, director of the Indian Bullions and Jewellers’ Association (IBJA), highlighted the international market upheavals, particularly the trade war between China and the U.S., which had a significant impact on both gold and the U.S. dollar. “The U.S. dollar fell while gold surged by almost 7%. However, following a promising high-level meeting between the two countries in Switzerland, it seemed like a breakthrough deal was achieved,” Rastogi said. She further speculated that, based on data shared by the Federal Reserve, gold rates would likely remain stable in the short term, with potential increases only occurring if the Federal Reserve decides to cut rates in its upcoming July meeting.
Adesh Jain, vice president of the Chowk Sarafa Association, noted that the price of gold had fallen by approximately ₹2,000 from ₹98,100 per 10 grams on May 8. He attributed this drop to fluctuations in the international market.
Ravindra Nath Rastogi, general secretary of the UP Sarafa Association and president of the Lucknow Sarafa Association, also cited the reduced tensions between India and Pakistan as a key factor in the decline of gold prices. He predicted that the trend would likely continue in the coming week.
Vinod Maheshwari, UP coordinator for the All-India Jewellers and Goldsmiths Federation, added that the reduction in gold prices could also be linked to lower demand in the local market during the ongoing wedding season, in addition to the impact of the China-U.S. tariff dispute.
As the situation evolves, jewellers and analysts will continue to monitor both domestic and global factors that may influence the price of gold in the weeks ahead.