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India's Gold Reserves Hit $130.68 Billion Despite Forex Dip

India's gold reserves increased by $664 million to reach $130.68 billion for the week ended March 13. However, the country's total foreign exchange reserves fell by $7.05 billion to $709.76 billion during the same period, continuing a decline from the previous week. The drop in forex reserves is attributed to the Reserve Bank of India's market intervention, selling dollars to support the rupee amid global oil price rises and Middle East tensions. Meanwhile, domestic bullion prices saw significant volatility, with gold falling over Rs 11,100 and silver dropping over Rs 28,100 on a weekly basis.

Key Points: India's Gold Reserves Rise to $130.68 Billion

  • Gold reserves rise to $130.68B
  • Forex reserves fall by $7.05B
  • RBI sold dollars to support rupee
  • Gold price fell Rs 11,100 weekly
  • Silver price fell Rs 28,100 weekly
2 min read

India's gold reserves rise to $130.68 billion

India's gold reserves increased by $664 million to $130.68 billion, even as total forex reserves fell by $7.05 billion to $709.76 billion.

"The fall has been largely attributed to the central bank's intervention in the currency market - RBI data analysis"

New Delhi, March 20

India's gold reserves increased by $664 million to $130.68 billion for the week ended March 13, data released by the Reserve Bank of India on Friday showed.

However, India's total foreign exchange reserves fell by $7.05 billion to $709.76 billion during the week ended March 13.

The decline follows an even sharper drop in the previous week ended March 6, when reserves fell by $11.68 billion to $716.81 billion from $728.49 billion.

The fall has been largely attributed to the central bank's intervention in the currency market, where it sold dollars to support the rupee amid pressure caused by rising global oil prices and geopolitical tensions linked to the Iran conflict.

Foreign currency assets, which form the largest part of the reserves, decreased by $7.678 billion to $555.568 billion during the reporting week.

These assets also reflect the impact of movements in major global currencies such as the euro, pound and yen against the US dollar.

Meanwhile, precious metals witnessed fluctuations on Friday, the last trading day of the week, amid rising tensions in the Middle East.

According to data from the India Bullion and Jewellers Association (IBJA), 999 purity gold reached Rs 1,47,218 per 10 grams, compared to Rs 1,47,889 on Thursday.

This means a decline of Rs 671 in gold prices in a single day. The price of silver climbed nearly Rs 2,500 per kilogram to Rs 232,364.

On weekly basis, the price of gold has fallen by more than Rs 11,100, while the price of silver has fallen by more than Rs 28,100.

The 999-purity gold on IBJA was priced at Rs 1,58,399 per 10 grams last Friday, while the price of 999 purity silver was Rs 2,60,488 per kilogram.

Meanwhile, gold and silver prices fluctuated significantly on the Multi-Commodity Exchange (MCX).

Around 5:58 p.m., gold for April delivery was trading at Rs 1,46,824 rupees per 10 grams, up 1.29 per cent, or Rs 1,870.

Silver for May delivery was trading at Rs 2,34,112 per kg, up 1.15 per cent, or Rs 2,652.

- IANS

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Reader Comments

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Priya S
The numbers are a bit confusing. Gold reserves up, but forex down sharply. And the gold price for consumers is falling weekly? My mother was just saying last week how expensive gold is for my cousin's wedding. Maybe it's a good time to buy some jewellery? 🤔
A
Arjun K
This shows the RBI's strategy is active and prudent. Using forex to defend the rupee's volatility is necessary, even if reserves dip temporarily. Building gold reserves simultaneously is a classic hedge. Strong move by the central bank. 💪
S
Sarah B
Interesting data. The correlation between geopolitical tensions in the Middle East, oil prices, and our reserves is clear. While the gold reserve increase is a positive headline, the net effect of a ~$18 billion forex drop over two weeks is significant. Hope the interventions are calculated and not depleting our buffers too fast.
K
Karthik V
Bhai, gold price down by 11k in a week!? This is huge. My family buys gold every Akshaya Tritiya. This news is going to be the main topic at the dinner table tonight. Silver also down even more. Market mein kharidaari ka accha time ho sakta hai.
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Meera T
With all respect to the RBI's efforts, a consistent drawdown of forex reserves is a concern for long-term economic stability. We need to focus on boosting exports and reducing oil dependency. The gold buying is good, but it shouldn't distract from the larger forex trend.

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