Union finance minister Nirmala Sitharaman on Monday explained the reason behind the rise in gold prices and assured that the government is closely monitoring the hikes. After the customary post-Budget meeting with the Central Board of Directors of the Reserve Bank of India, she said, “Most countries today, particularly their central banks, are buying gold and silver and storing them...Now the spike is largely due to central banks also buying and storing.” The FM further noted, “Gold has always been a favoured investment for households…The high-pitched demand for domestic consumption also sees a seasonal spike during festival season…We are watching it, but I’m not sure it has reached such alarming proportions. I think it has not gone beyond a certain limit. But of course, RBI will also be monitoring it.”Meanwhile, the yellow metal has continued to climb, mirroring global trends amid fresh tariff related concerns. Gold prices jumped Rs 2,946 to Rs 1,59,822 per 10 gram in Monday’s futures trade. On the Multi Commodity Exchange (MCX), April gold contracts rose by Rs 2,946, or 1.88%, to Rs 1,59,822 per 10 grams, with a business turnover of 7,515 lots. Internationally, gold futures on Comex gained $96.61, or 1.9%, to $5,177.51 per ounce.She also spoke on the India-US trade deal, saying the finance ministry is assessing the possible impact of the Supreme Court of the United States’s ruling that struck down Donald Trump’s tariff framework. “It is early to comment,” she said. The development followed a landmark verdict by the US Supreme Court, which struck down Trump’s emergency tariffs imposed under the International Emergency Economic Powers Act (IEEPA), declaring them illegal and reshaping the global tariff landscape. She also urged the nation to contribute to the country’s economic growth, “everybody should participate in India’s growth story.The post-Budget meeting was attended by Sitharaman, minister of state for finance Pankaj Chaudhary, and the RBI governor.
