News Summary
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- Prime Minister Narendra Modi appealed during an event in Telangana to avoid purchasing gold for a year and to reduce cooking oil consumption to save foreign currency reserves.
- Congress General Secretary KC Venugopal criticized Modi’s move as irresponsible, arguing it puts common citizens in difficulty and accused the government of lacking an emergency economic plan.
- Ongoing geopolitical tensions stemming from the Iran-US conflict have driven gold prices upward, with central banks increasing gold reserves as a strategic asset.
April 12, Kathmandu – Prime Minister Narendra Modi was visiting Telangana on Sunday. In Hyderabad, he announced multiple development projects at a government event. He also addressed a public gathering in Secunderabad.
During the Secunderabad event, Modi appealed to the people to save foreign exchange by adopting certain measures. Notably, he urged the public not to purchase gold for one year and to reduce the usage of edible oil.
The Congress party has criticized Modi’s statement, claiming that instead of taking emergency economic measures, Modi is imposing hardships on the common people.
Addressing the public, the Prime Minister noted, “Despite supply chain challenges, a major war has been ongoing in our neighborhood for the past two months. Its effects are felt worldwide and have had a significant impact on India.”
“India does not have large reserves of oil wells. We must import vast quantities of essentials like petrol, diesel, and gas from other countries. Due to the conflict, prices of these commodities have surged. Our media clearly reflects what is happening in neighboring countries.”
Modi added, “The Government of India is continuously striving to protect citizens during this crisis. To prevent the burden on the public, the government has taken on all the weight.”
What was said about buying gold?
Citing ongoing supply chain disruptions, the Prime Minister emphasized, “If supply chain issues persist, the situation will worsen despite all efforts. So now, we must unite and fight with the nation foremost in our minds. Patriotism means not just dying for the country but also living and fulfilling your duties.”
“There is also significant foreign exchange spent on importing cooking oil. Reducing its use is also an act of patriotism. This will improve the economic health of the country and have positive effects on family health.”
Regarding saving foreign currency, Modi stated, “Purchasing gold also consumes a considerable amount of foreign exchange. In past crises, people donated gold for the country’s benefit. Now, donations are not necessary but we will not buy gold ornaments at any events throughout the year.”
“We will refrain from buying gold. Saving foreign currency is a patriotic duty that we must all accept.”
Congress Criticism
Congress General Secretary KC Venugopal expressed concerns that despite three months since the Iran-US conflict began, Prime Minister Modi has failed to secure India’s energy safety.
Venugopal said, “The Prime Minister has irresponsibly burdened ordinary citizens instead of formulating an emergency economic plan, which is deeply shameful.”
“When the focus is solely on elections and petty politics, the inevitable outcome is economic devastation.”
He advised Modi and his government to adopt all necessary measures to ensure sufficient fuel reserves and prevent citizens from suffering due to poor planning.
Reasons behind the gold price surge
The conflict involving Iran, the United States, and Israel has caused significant volatility across stock markets, crude oil, precious metals, and currencies.
Gold witnessed a historic price surge in 2025 with increases exceeding 60%. The causes are complex but interconnected.
Geopolitical tensions have heightened global instability, prompting investors to favor traditional assets such as gold over riskier options. Consequently, demand and dependence on gold have increased.
Market fluctuations driven by policies under former US President Donald Trump encouraged investment in gold and silver. Geopolitical anxieties further accelerated gains in gold prices.
Gold prices also surged after the US arrested Venezuelan President Nicolas Maduro. Additionally, discussions about Greenland’s status under US influence were raised.
Central banks worldwide are rapidly increasing gold holdings as reserve assets in response to the waning dominance of the US dollar. This shift has directly impacted gold price dynamics.
