Editor’s Note
This article highlights recent volatility in gold prices, citing a statement from India’s Finance Minister, Nirmala Sitharaman. She attributes the fluctuations to global uncertainty, which drives investors toward gold as a traditional safe-haven asset.
Gold prices have been witnessing tremendous volatility these days. Regarding this, Finance Minister Nirmala Sitharaman has made a significant statement. She said that due to global uncertainty, investors have lost faith in any single currency. This is the reason why such sharp volatility is being seen in gold prices. In an interview with news agency PTI, the Finance Minister clearly stated that when markets around the world become unstable, investors rush towards gold as a safe haven. This causes prices to fluctuate rapidly up and down.
On Monday, gold on the Multi Commodity Exchange (MCX) was seen trading down 0.19 percent, or about 278 rupees, at 1,47,475 rupees per 10 grams. This decline was recorded compared to the previous closing price. According to India Bullion data, in just the last five days, spot gold prices have fallen by more than 13 percent. On January 29, 2026, gold was at a record level of 1,70,480 rupees per 10 grams. Now, it has slipped to around 1,47,510 rupees. This sharp decline has surprised both small and large investors.
Speaking on Budget 2026, the Finance Minister said that the government’s priority is to promote investment so that economic growth can gain momentum. She informed that the government has continuously worked on structural reforms, fiscal discipline, and monetary stability, while special emphasis has been placed on public investment. Nirmala Sitharaman also said that inclusive development and connectivity with global markets are extremely necessary to lead India towards the goal of a ‘Developed India’.
Meanwhile, a blow has also been dealt in Budget 2026 for those investing in the derivatives market. The government has proposed to increase the Securities Transaction Tax (STT) on futures from 0.02 percent to 0.05 percent and on options from 0.1 percent to 0.15 percent. The Finance Minister clarified that this step has been taken to discourage speculation, so that people do not jump into risky deals without thinking. According to market experts, volatility in gold is likely to persist for now, with support seen around 1,35,000 rupees and resistance near 1,50,000 rupees.