Finance Minister Nirmala Sitharaman has said that the volatility in gold prices has been due to global uncertainties, according to a report published by PTI.
She added that due to these global uncertainties, central banks too have been investing in gold.
“It also shows that investors do not have confidence in any one particular currency, and hence the rush to buy gold,” Sitharaman said, according to a report published by PTI.
No change in import duty for Gold
Gold has been in trend, as prices of the yellow metal have been going through wild fluctuations. For the Union Budget 2026, markets had widely expected that the government may raise duties on imports of gold and silver. Some analysts had also said that the government may revise household limits for gold.
However, no changes were made, and bullion stayed where it was.
Fluctuations in Gold prices continues
In recent days, gold prices have witnessed sharp falls. On January 29, 2026, the price of 24k gold in India was at Rs 1,75,930 per 10 grams. Today, i.e., on February 2, the price of gold is at Rs 1,48,710 per 10 grams. This marks a fall of nearly 16%.
(Check prices of gold and silver on Financial Express.com)
Gold prices had been gaining over the past two months; however, prices of the yellow metal fell by nearly 10% on January 30, marking its sharpest one-day fall since 1983. Experts have said that the crash was triggered due to excessive profit-booking and a rebound in the dollar index.
Analysts have also said that a rise in margin requirements by the CME Group added to the selling pressure. The CME Group has implemented a margin hike on futures contracts of gold and other precious metals.
For non-heightened risk profiles, gold futures margins have been increased to 8% from the present 6%. For heightened risk profiles, margins have been raised to 8.8% from the present 6.6%. This added to the pressure on gold prices.
Analysts pointed out that the nomination of Kevin Warsh as the next chair of the US Federal Reserve affected prices of precious metals, as the former Fed governor is known for his hawkish stance.
Experts have also said that gold and other precious metals had gained excessively as Chinese speculators pushed prices to their record-high levels. As Chinese traders exited the markets, an excessive sell-off was triggered.
Outlook for gold
Despite the very recent pullback, gold prices remain elevated. UBS said that demand for gold remains strong and that prices could rise to the $6,200 mark by mid-2026. JP Morgan expects gold to reach the $6,300 mark by the end of this year, while Deutsche Bank expects gold prices to rise to the $5,500 mark by year-end, Reuters said in a report.