Finance Minister Nirmala Sitharaman addressed the ongoing fluctuations in gold prices on Monday, February 2, 2026, attributing the volatility directly to prevailing global uncertainties. According to reports from the news agency PTI, Sitharaman made these remarks during a recent statement, highlighting the interconnected nature of commodity markets and international economic conditions.
Global Uncertainty Driving Gold Price Swings
Sitharaman emphasized that the instability in gold prices is a direct consequence of the global uncertainty that currently overshadows commodity market investors. She pointed out that this volatility serves as a clear indicator that investors are lacking confidence in any particular currency, leading them to seek refuge in assets like gold during turbulent times.
"Volatility in gold prices exists because of global uncertainty, which shows investors do not have confidence in any particular currency," Sitharaman stated, as per the agency report. This observation underscores the broader economic apprehensions that are influencing investment behaviors and market dynamics across the globe.
Union Budget Focus on Investment and Growth
In addition to discussing gold prices, the Finance Minister elaborated on the key aspects of the recent Union Budget. She noted that the budget has strategically prioritized investment as a crucial tool for sustaining economic growth. A significant focus has been placed on labor-intensive sectors, aiming to boost employment and stimulate economic activity in these areas.
Sitharaman also addressed the hike in Securities Transaction Tax (STT) on Futures and Options (F&O) trading, describing it as a form of deterrence. The intention behind this move is to discourage excessive speculative derivative trading, encouraging more stable and long-term investment practices instead.
Continued Disinvestment and Asset Monetization
The Finance Minister reaffirmed the government's commitment to maintaining the pace of disinvestment and asset monetization initiatives. She explained that these efforts are designed to encourage a greater public floating of Central Public Sector Enterprises (CPSEs), thereby enhancing market participation and transparency.
This ongoing strategy is part of a broader plan to optimize public resources and foster a more dynamic economic environment. Sitharaman's comments highlight the government's proactive approach to managing public assets and promoting sustainable economic development through strategic fiscal policies.
The developments in gold prices and the related economic policies continue to be monitored closely, with further updates expected as the situation evolves.
