18K Gold Rate Today in Lucknow

Lucknow, the capital of Uttar Pradesh, is rich in heritage and tradition. The yellow metal has significant importance in the life of the people of Lucknow. Being one of the most populous cities of the state with approximately 39 lakh population the demand for gold in the city is high. People in Lucknow still consider and trust local jewellers more than the gold jewellery brands available in the market. Let's know more about the gold rates and factors affecting the gold rate in Lucknow.

The most important point to consider while purchasing gold is the purity of the gold, which is measured in karat (K). Higher karat implies a purer form of gold.

Factors affecting gold rates in Lucknow

• Physical demand for Gold: In India, the Indian Bullion and Jewellers Association will fix the prices of gold. 
  The association determine rates based on the following factors:
  1. The rates are fixed by the biggest dealers in the city.
  2. The local import duty is added to the import items.
  3. The price is based on the formula of the futures market of the Multi Commodity Exchange. 
• Demand and Supply of Gold: The Demand and the supply of gold affect the prices. Purchasing physical gold provides the most direct exposure to the gold. Gold may be demanded for ornamental purposes or investment purposes. 
• Deterioration of mining activity: Gold mining in India, since 2013, has been very low considering the demand which is around below two metric tons. The demand for gold in India is principally met through imports. India is one of the leading importers of gold.
• Currency fluctuations: It also influences the price of gold. Gold is traded in US Dollars in the international market. The rupee-dollar conversion impacts price.
• Central Bank policies: Central Bank also does the sale and purchase of gold and holds reserves of gold which affect the price of gold in the market.
• Interest rate: Interest rate and gold price have an inverse relationship with each other, with an increase in interest rate people prefer to sell gold while with a decrease in the interest rate they buy gold.

Why do gold prices keep changing in Lucknow

The gold price in Lucknow keeps on changing due to various local and global factors. Any change in the global gold market affects the price of gold in Lucknow such as changes in demand, economic conditions, geopolitical events, or currency movements. Local demand and supply also play an important factor such as festivities, cultural traditions, wedding season, etc. 
The exchange rate between the Indian Rupee (INR) and other major currencies, particularly the US Dollar (USD), has a direct influence on the gold price in Lucknow. Government policies and taxes, such as import duty, customs etc also affect the price of gold in Lucknow. News, market rumours, and expectations about economic conditions or financial factors can influence investor behaviour.

Taxation on Gold Rates in Lucknow

Gold in India is subject to taxation either on purchase or on sale.
There are two main taxes related to gold, Goods and Services Tax (GST) and Income tax or Capital Gain tax. From July 2017, when you purchase gold, you have to pay (GST) @3%. 
When you sell gold, the tax on the profit when you sell depends on how long you've owned it. If you sell gold within three years of buying it, any profit you make is called short-term capital gains and are taxed at slab rate, whereas If you sell gold after owning it for three years or more, any profit you make is called long-term capital gains and taxed @ 20% with indexation.

How is the Gold Rate determined in Lucknow

Various factors are responsible for determining the gold rate in Lucknow. The international price of gold, custom duty, demand and supply plays a major role in determining the price of gold. Currency fluctuations, especially the exchange rate between the Indian Rupee and the U.S. Dollar (USD) impact gold prices as gold is traded in USD globally. Local factors such as weddings, festivals and cultural traditions also play an important role in deciding the price. The gold reserves held by the Reserve Bank of India, Geopolitical factors and other uncertainties also affect the gold rate.

What to consider while buying gold in Lucknow

While purchasing gold, checking for purity is most important. Buyers should examine the hallmark and also request a certificate of authenticity from the seller. Opting for a reputable or family jeweller ensures trustworthiness, as fraud is prevalent in the market. Another factor to consider when purchasing gold jewellery is the making cost charged by the jeweller. This cost can vary from seller to seller, so buyers need to compare and assess the making charges before making an informed decision. Ethical practices and a GST bill should be expected. Verifying the weight of the jewellery before finalising the purchase is crucial. It is essential to inquire whether the weight mentioned includes the gems and stones incorporated in the jewellery or not. Obtaining a detailed bill with weight, purity, and hallmark is important also, understanding the jeweller's return and exchange policy is recommended for a smooth purchase experience.