Finance Minister Nirmala Sitharaman on Monday said the government is closely monitoring the recent surge in gold and silver prices but signalled that the rally has not yet reached “alarming” proportions.
Speaking at a press briefing following a customary post-budget meeting with the Reserve Bank of India’s central board of directors, Sitharaman attributed the volatility primarily to global factors rather than domestic overheating. She noted that while precious metals are a favoured investment for Indian households, the current price action is largely driven by aggressive accumulation by central banks worldwide.
“The spike is largely due to central banks also buying and storing,” Sitharaman told reporters. “For our domestic consumption, which is a usual thing which happens every season…every household purchase is affected because of the global increase.”
The briefing comes as gold futures on the Multi Commodity Exchange (MCX) reached approximately ₹1,60,000 per 10 grams, a significant jump as investors seek safe-haven assets amid geopolitical tensions and shifting US tariff policies.
Sitharaman emphasised that the government and the RBI are keeping a watchful eye on market movements, though prices have not yet crossed “certain limits”. India remains almost entirely dependent on imports for its gold supply, she said, as domestic extraction remains insufficient to meet demand.
RBI Governor Sanjay Malhotra, who joined the minister at the briefing, provided further context, noting that the total order value of gold imports has not seen a corresponding spike despite the price increases. He reassured that the RBI maintains “sufficient liquidity” to meet the productive needs of the economy.
