Nirmala Sitharaman says gold price volatility exists due to global uncertainty: ‘Investors do not have confidence in…’

Union Finance Minister Nirmala Sitharaman said that the volatility in gold prices is arising due to the global uncertainty looming over the commodity market investors, reported the news agency PTI on Monday, 2 February 2026.

Sitharaman also added that the reason why investors do not have confidence in any particular currency is due to the uncertainty in the markets.

“Volatility in gold prices exists because of global uncertainty, shows investors do not have confidence in any particular currency,” said FM Nirmala Sitharaman, according to the agency report.

Gold prices today

Gold prices on the Multi-Commodity Exchange (MCX) were trading 0.19% or ₹278 per 10 grams lower at ₹147,475 per 10 grams as of 4:28 p.m. (IST) on Monday's market, compared to ₹147,753 per 10 grams at the previous commodity market close.

According India Bullions data, the gold spot prices in India have lost more than 13% in the last five days as the precious metal stands at ₹147,510 per 10 grams, compared to their earlier high level of ₹170,480 per 10 grams on 29 January 2026.

Investment a priority?

The minister also told the news agency that the Union Budget focused on investment as a priority tool for sustaining growth, while targeting labour-intensive sectors.

“We have pursued far-reaching structural reforms, fiscal prudence and monetary stability whilst maintaining a strong thrust on public investment,” said Sitharaman during her Budget speech.

During her speech on Sunday's budget, the finance minister also said the country will continue to take steps towards its Viksit Bharat goal by balancing its ambitions with inclusions in the economy.

“As a growing economy with expanding trade and capital needs, India must also remain deeply integrated with global markets, exporting,” said Sitharaman.

STT Hikes

Union Budget 2026 proposed to increase the Security Transaction Tax (STT) on futures trading to 0.05% from 0.02% existing level, and tax on options trading will be increased to 0.15% from 0.1% level.

This means that the investors who are trading or looking to trade in the futures & options (F&O) derivatives market will have to pay more tax to the government per transaction.

On Monday, FM Nirmala Sitharaman told the news agency that the STT hike on F&O is a sort of deterrence so that people do not go headlong in speculative derivative trading.

Apart from the comments on gold, investments and STT hikes, the Finance Minister also talked about the pace of disinvestment and asset monetisation to continue, which will encourage more public floating of CPSEs.

The government is also confident about the higher private consumption to sustain in coming months, amid the government's FY27 deficit target.

Disclaimer: This story is for educational purposes only. We advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary.