Gold Prices On July 1: Kolkata, Chennai, and Lucknow See Steady Increase In Rates

India, the world’s second-largest consumer of gold after China, continues to see price fluctuations driven by a mix of international and domestic factors. While the yellow metal is traditionally regarded as a hedge against inflation and a safe investment during uncertain times, its pricing in India is shaped by more than just global demand. With gold traded globally in US dollars, currency movements play a vital role. Back home, import duties, Goods and Services Tax (GST), and local levies also significantly impact retail rates.

Gold prices across the country recovered on Tuesday, with cities like Kolkata, Chennai, and Lucknow recording relatively steady rates on July 1. In Kolkata, the price stood at Rs 9,020 per gram for 22-karat gold, and Rs 9,840 per gram for 24-karat gold. Chennai mirrored this trend with the same rates for both 22K and 24K gold. Meanwhile, Lucknow posted slightly higher prices at Rs 9,035 per gram for 22-karat gold and Rs 9,855 per gram for the 24-karat variant.

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Investor Sentiment Shifts Amid Cooling Global Tensions

Gold prices have faced persistent downward pressure in recent sessions, with Delhi witnessing a drop of Rs 200 to Rs 97,470 per 10 grams on Monday. Gold of 99.5 per cent purity also slipped Rs 150 to Rs 97,050 per 10 grams on the last day of June.

The latest dip was attributed to easing geopolitical concerns and improved sentiment in global markets. “The cooling of tensions in the Middle East and the progress on trade agreements with the US are lowering the immediate need for safe haven assets. As countries move swiftly to finalise deals, risk sentiment across markets has improved, prompting investors to unwind safe-haven positions,” said Chintan Mehta, CEO of Abans Financial Services.

Still, for Indian investors, gold continues to retain its appeal. With over 97 crore internet connections and robust digital platforms supporting financial inclusion, access to investment tools—particularly gold—has become more widespread. As a result, even amid international corrections, gold prices in key Indian cities like Kolkata, Chennai, and Lucknow remain firm, supported by domestic demand and market dynamics.

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