Gold prices are witnessing sharp and unpredictable fluctuations, drawing attention not just from domestic buyers but also from global markets. Addressing the volatility, Union Finance Minister Nirmala Sitharaman said the primary reason behind the swings is growing uncertainty in international markets. Speaking to reporters on Monday, she explained that instability in global commodity trade and weakening confidence in individual currencies have pushed investors towards gold as a safe-haven asset, naturally leading to heightened price movements.
According to data from the Multi-Commodity Exchange (MCX), gold prices slipped marginally on Monday evening. The price of ten grams of gold fell by about ₹280 compared to the previous session’s close, a decline of less than one per cent. Market experts noted that daily gold prices are heavily influenced by international cues, prompting many buyers to adopt a cautious, wait-and-watch strategy.
The volatility has been particularly striking over the past five days. On January 29, gold prices in India’s spot market were above ₹1.7 lakh per ten grams. Since then, prices have dropped to nearly ₹1.4 lakh, marking a steep fall of over 13 per cent in a short span. The sudden decline has surprised regular buyers and served as a warning for investors expecting quick gains.
Responding to queries related to the Union Budget, Sitharaman emphasised that sustained economic growth depends largely on investment. She said the government is prioritising employment-generating sectors and focusing on long-term structural reforms, while maintaining fiscal discipline alongside increased public investment. The objective, she noted, is inclusive growth that allows every citizen to participate in the country’s development.
The Finance Minister expressed confidence that India is steadily moving towards becoming a developed nation. She said India, as a growing economy, must play a meaningful role in global trade and is actively working to boost exports by integrating more deeply with international markets. At the same time, steps are being taken to make domestic markets resilient and globally competitive.
Sitharaman also addressed the recent increase in the Securities Transaction Tax (STT) in the Futures and Options segment. She said the decision was intended to curb speculative, gambling-like behaviour and protect small and retail investors from excessive risk, thereby supporting market stability.
On disinvestment, she said the process involving public sector enterprises is progressing at a fast pace. According to her, this will encourage wider public participation, ensure efficient use of resources and help fund development projects. Transparent policies, she added, are aimed at maximising the value of public assets for long-term economic benefit.
Concluding her remarks, Sitharaman said global economic conditions are clearly impacting domestic markets. While price fluctuations are unavoidable, she maintained that ongoing reforms will help bring stability over time. She advised investors to avoid impulsive decisions and carefully assess market conditions, stressing that every reform undertaken is a step towards building a developed India.