Nirmala Sitharaman has said that the government is closely watching the movement of gold prices in the country. She made the remarks while addressing a press conference in New Delhi after the customary post-Budget meeting with the Central Board of Directors of the Reserve Bank of India (RBI).
The Finance Minister said that gold prices usually rise during festival seasons, as demand increases during weddings and celebrations. She explained that such seasonal increases are normal and have been seen in previous years as well.
Ms Sitharaman noted that although demand for gold has gone up recently, it has not reached alarming levels. She also said that prices have remained within circuit limits, meaning there has been no unusual or extreme fluctuation in the market.
She assured that the government is keeping a close watch on the situation to ensure stability in the financial system. According to her, there is no need for concern at this stage.
The post-Budget meeting between the Finance Ministry and the RBI Board is a regular exercise where key economic issues are discussed. Topics such as inflation, financial stability, banking performance, and market trends are reviewed during these meetings.
The Minister’s comments come at a time when global economic factors and domestic demand are influencing commodity prices. However, she made it clear that the government is alert and monitoring developments carefully.