Finance Minister Nirmala Sitharaman has said that while the recent rise in gold and silver prices is being closely monitored, there is no immediate reason for concern. She clarified that the government and the Reserve Bank of India (RBI) are keeping a watch on the situation.
Responding to questions about the sharp increase in precious metal prices, Sitharaman highlighted that India relies entirely on imports to meet its gold demand. The country does not currently have sufficient domestic resources to explore and extract gold at the scale required, though some efforts are being made to improve this.
She explained that gold has traditionally been a preferred investment for Indian households. Demand typically rises during festival seasons such as Akshaya Tritiya and other auspicious occasions, which is a normal and predictable pattern.
According to the Finance Minister, current purchases have not crossed alarming levels. She emphasized that buying gold remains part of India’s natural consumption behavior and that the situation is under control. RBI Governor Sanjay Malhotra also confirmed that the central bank is monitoring developments.
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