Why are gold prices rising? Finance minister Nirmala Sitharaman explains
Times of India
by TOI BUSINESS DESKFebruary 23, 2026
AI-Generated Deep Dive Summary
Union Finance Minister Nirmala Sitharaman has explained that the recent surge in gold prices is driven by central banks globally increasing their holdings of gold and silver, as well as high domestic demand during festival seasons. She emphasized that while the government is closely monitoring price hikes, they do not view the situation as alarming and believe it remains within manageable limits. Gold prices have continued to rise, aligning with global trends, with futures trade in India showing a significant jump of Rs 2,946 per 10 grams, reaching Rs 1,59,822. Internationally, gold futures on Comex also rose by $96.61 to $5,177.51 per ounce.
The minister’s comments came during a post-Budget meeting with the Reserve Bank of India (RBI) and other officials. She highlighted that while central banks’ purchases are a key factor, domestic demand, especially during festivals like Diwali, also contributes to the seasonal spike in prices. Sitharaman assured that the government is keeping a watchful eye on price movements but does not see them reaching worrying levels. The RBI’s oversight, combined with market dynamics, will help regulate any potential volatility.
Additionally, Sitharaman touched upon the implications of the US Supreme Court ruling, which struck down former President Donald Trump’s emergency tariffs under the International Emergency Economic Powers Act (IEEPA). She noted that while it is early to assess the full impact of this decision on India-US trade relations, it could reshape the global tariff landscape and affect international markets. The finance minister also urged citizens to actively participate in India’s economic growth story, emphasizing collective contribution to achieving economic goals.
The meeting with the RBI and other officials underscored the government’s commitment to maintaining economic stability and addressing emerging challenges. As gold prices remain a key indicator of global economic trends, Sitharaman’s insights provide
Verticals
worldasia
Originally published on Times of India on 2/23/2026