- The government is closely monitoring gold and silver prices, with no alarming situation reported: Sitharaman
- High domestic demand for gold is seasonal and mostly met through imports, she said
- International gold and silver prices fluctuate due to central bank purchases, she added
The government is closely monitoring gold and silver prices, and the situation is not alarming, Union Finance Minister Nirmala Sitharaman has said, adding that the high-pitched demand in the domestic market appears to be "seasonal".
Addressing the media after its customary post-Budget meeting with the Central Board of Directors of the Reserve Bank of India (RBI), Sitharaman said, "Almost all the gold that comes to the market is imported. We are an import-dependent country; steps have been taken, but they are not sufficient to meet demand."
"Gold is a favoured investment for households. The high-pitched demand in the domestic market appears to be seasonal. We are watching it; it has not reached an alarming situation," she said.
The RBI, she said, is also monitoring the situation. "Most countries today, particularly central banks, are buying gold and silver. International prices of gold and silver are spiking up and down largely due to central bank buying," Sitharaman said.
On the US tariff issue, the minister said the Ministry of Commerce and Industry is reviewing the situation. "It is early to comment."
The Finance Minister was also asked about the ongoing strategic disinvestment of IDBI Bank. She said there is "no systemic kind of issue" and added that the government does not comment on individual companies. She further said the RBI has adequate liquidity.
RBI Governor Sanjay Malhotra echoed the Finance Minister. "We stand committed to providing liquidity for the productive needs of our economy."
