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RBI's Gold Rush: Why India Brought Home 274 Tonnes Amid Global Tensions

The Reserve Bank of India is significantly increasing its domestic gold reserves as global tensions rise. India has brought back 274 tonnes of gold since March 2023, with 64 tonnes repatriated in just the last six months. Currently, 575.8 tonnes of India's total 880.8 tonnes gold reserves are stored in domestic vaults. Meanwhile, gold prices continue their upward trend, rising 52% this year amid global uncertainties and central bank buying.

Key Points: RBI Boosts Domestic Gold Holdings to 575.8 Tonnes

  • RBI repatriated 274 tonnes of gold since March 2023 amid global sanctions
  • Domestic gold holdings now total 575.8 tonnes in Indian vaults
  • Gold prices rose 0.34% to Rs 1,20,047 per 10 grams on MCX
  • Global gold surged 52% this year, hitting record $4,381.21 per ounce
2 min read

RBI boosts gold holdings in India to 575.8 tonnes; domestic prices edge higher

India brings 64 tonnes of gold home as RBI increases domestic reserves to 575.8 tonnes amid global uncertainties, while domestic gold prices edge higher.

"The RBI’s decision to keep a larger share of its gold at home reflects growing concerns over the safety of overseas reserves amid rising global tensions. - RBI Official Data"

Mumbai, Oct 29

India’s gold reserves are increasingly being stored within the country as the Reserve Bank of India (RBI) continues to shift its holdings back home.

The move comes at a time when nations across the world are using financial sanctions and asset freezes as tools of geopolitical pressure.

According to official data, the RBI brought around 64 tonnes of gold to India during the first six months of the current financial year.

As of September-end, India’s total gold holdings stood at 880.8 tonnes, out of which 575.8 tonnes are now kept in domestic vaults.

The remaining 290.3 tonnes are held with the Bank of England and the Bank for International Settlements (BIS).

Additionally, 14 tonnes are part of gold deposit arrangements, as per the official data.

Since March 2023, the RBI has brought back 274 tonnes of gold from overseas locations.

This large-scale repatriation began after the Russia-Ukraine conflict and the Taliban takeover of Afghanistan, when G7 nations froze the foreign currency reserves of both countries.

The RBI’s decision to keep a larger share of its gold at home reflects growing concerns over the safety of overseas reserves amid rising global tensions.

Meanwhile, gold prices in India rose on Wednesday, tracking gains in international bullion markets ahead of the US Federal Reserve’s interest rate decision.

On the Multi Commodity Exchange (MCX), gold opened nearly flat at Rs 1,19,647 per 10 grams, compared to its previous close of Rs 1,19,646.

Later, it rose by Rs 401 or 0.34 per cent, trading at Rs 1,20,047 per 10 grams during early trade.

Silver prices also gained, opening at Rs 1,44,761 per kg and rising Rs 989 or 0.69 per cent to Rs 1,45,331 per kg.

In the global market, spot gold edged up 0.2 per cent to $3,957.42 per ounce, after touching its lowest level since October 7 on Tuesday.

However, easing US-China trade tensions limited gains, even as investors awaited an expected US Fed rate cut.

So far this year, gold prices have surged nearly 52 per cent, hitting an all-time high of $4,381.21 per ounce on October 20.

The rally has been driven by global uncertainties, expectations of rate cuts, and continued buying by central banks, including the RBI.

- IANS

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Reader Comments

R
Rohit P
Gold prices touching ₹1.2 lakh per 10 grams! 😳 My mother's gold jewelry bought 10 years ago has doubled in value. This is why Indians love gold - it's both tradition and smart investment.
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Arjun K
While I support bringing gold reserves home, I hope RBI is also focusing on diversifying our foreign reserves. Over-reliance on any single asset, even gold, could be risky in the long run.
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Sarah B
As someone working in finance, this strategic move shows India's growing economic sovereignty. The timing is perfect given global uncertainties. More countries should follow this approach.
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Kavya N
My wedding is next year and gold prices are making me anxious! 😅 But good to know our country's reserves are secure. Traditional Indian wisdom of valuing gold continues to prove right.
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Michael C
Interesting to see how geopolitical events are reshaping global finance. The Russia-Ukraine conflict has clearly prompted many nations to rethink their reserve management strategies. India is being proactive.
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Vikram M
52% surge in gold prices this year! This is both exciting and concerning. While it strengthens our reserves, it also indicates how volatile global markets have become. Stay invested but be cautious.

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