Gold Price
Today’s gold price: Tuesday, August 12, saw a decline in gold prices in the domestic futures market due to profit booking ahead of retail inflation data. The yellow metal was also affected by speculation that the conflict between Russia and Ukraine would be coming to an end soon.
Expectations for a rate cut by the US Federal Reserve next month will be influenced by an increase in US inflation.
The CME FedWatch Tool shows that traders are pricing in about an 85% possibility of a Fed rate drop in September, according to Reuters.
Additionally, the attention is on the Friday, August 15, meeting between Russian President Vladimir Putin and US President Donald Trump in Alaska to discuss ending the conflict between Russia and Ukraine.
On Wednesday, August 13, gold prices in Chennai dropped, with 24-karat gold (999 purity) retailing at Rs 10,139 per gramme and 22-karat gold at Rs 9,294. Although Chennai’s costs are still quite similar to those in Bengaluru, Mumbai, Pune, Kolkata, Hyderabad, and a number of other large Indian cities, the decline is indicative of a general softening of rates in these areas.
In contrast, Lucknow topped the chart at Rs 9,305 and Rs 10,150 per gramme, while Delhi recorded slightly higher pricing at Rs 9,309 per gramme for 22-karat and Rs 10,154 for 24-karat gold. Gold is still seen as a safe-haven asset despite the price decline, particularly in times of market volatility and economic uncertainty.
Festive highlight
According to analysts, the demand for gold in Lucknow is still very high as India’s hectic holiday season—which is emphasized by Diwali, Dhanteras, and the customary wedding season begins. A major factor in maintaining this pace is the city’s long-standing cultural association with gold jewelry, which is intricately intertwined into religious rituals, wedding customs, and festivals. Lucknow’s market is still strong even though gold prices in a number of other Indian cities have started to decline. Since the city often leads the nation’s daily gold price charts, merchants are benefiting from a unique combination of strong customer demand, thriving retail activity, and the symbolic value of gold in local families.
