gold-price-not-crossed-certain-limits-we-re-monitoring-nirmala

Union Finance Minister Nirmala Sitharaman has said the government was closely monitoring gold prices, noting that there were seasonal spikes during festival periods and that the price has not crossed 'certain limits'. Sitharaman made the remarks during a press conference in New Delhi on Monday, after the customary post-Budget meeting with the Central Board of Directors of the RBI.

 

"Gold is always an investment for households, seen seasonal spikes during festival season. We are watching it, but not seeing that prices have gone beyond a certain limit," she said.

 

Sitharaman attributed rising gold prices to heavy purchases by central banks globally, and said the government and RBI are keeping a close watch on the precious metals’ imports, though they are not at an “alarming proportion”.

 

On IDBI Bank, Sitharaman stated that there was 'no systemic kind of issue', adding that as a matter of policy, the government does not comment on individual companies. She further said the Reserve Bank of India (RBI) has adequate liquidity.

 

"The Reserve Bank of India has sufficient liquidity. We have credit availability for up to five years. We will fulfil whatever the country needs," she added.

 

 

"It is early to comment," Sitharaman said, while speaking on the US tariff issue. She informed that the Ministry of Commerce and Industry was reviewing the situation.

 

Addressing the media, Reserve Bank of India (RBI) Governor Sanjay Malhotra said the order value of the gold import didn't increase in recent times despite an increase in prices. Agreeing with the Finance Minister, the RBI Governor said, "We stand committed to providing liquidity for the productive needs of our economy."

 

On the gross Foreign Direct Investment (FDI), he said the FDI has been very robust. "Even this year, after good growth rate last year, we have sufficient reserves."

 

The Union Finance Minister held the customary post-Budget meeting with the Central Board of Directors of the RBI, along with the Union Minister of State for Finance, Pankaj Chaudhary, and Sanjay Malhotra, Governor of the RBI.