RBI's Gold reserve valuation triples over a year to Rs 6.8 lakh cr amid surge in prices and new buying

ANI April 19, 2025 272 views

The RBI's gold reserves have tripled in value over the past year, now standing at Rs 6.8 lakh crore. Global gold prices have surged due to economic uncertainty and central bank demand. Trade tensions and a weaker dollar have further boosted gold's appeal as a safe-haven asset. MCX gold futures hit a record high of Rs 95,935 per 10 grams amid rising demand.

"Gold prices raced to an all-time high, driven by a weaker dollar, trade war tensions, and safe-haven inflows." – Manav Modi, Motilal Oswal
Mumbai, April 19: The Reserve Bank of India (RBI) reported a sharp rise in the value of its gold reserves for the week ending April 11, reflecting a global surge in gold prices.

Key Points

1

RBI gold reserves surge Rs 11,986 crore in a week

2

Global central banks boost gold amid economic risks

3

MCX Gold hits record Rs 95,935 per 10g

4

Trump-China trade tensions fuel safe-haven demand

According to data released by the RBI on Friday, the value of the central bank's gold holdings has tripled over the past year, highlighting a significant increase in its gold purchases during this period.

As per the latest data, the value of RBI's gold holdings surged by Rs 11,986 crore during the week ending April 11. As of that date, the total value of the RBI's gold reserves stands at Rs 6,88,496 crore.

This increase comes at a time when central banks across the world are stepping up their gold purchases amid growing economic and geopolitical uncertainties. Gold is widely regarded as a safe-haven asset during volatile times, prompting central banks to add to their reserves as a protective measure.

The consistent rise in India's foreign exchange reserves, along with the jump in the value of gold reserves, underscores the RBI's strong position in managing external shocks. It also reflects a broader global trend of central banks boosting their gold assets to hedge against global risks.

There's no looking back for safe-haven gold amid the global trade uncertainties that have emanated from Trump administration's reciprocal tariffs and Chinese counter tariffs.

Gold prices on Multi Commodity Exchange of India (MCX) touched yet another record high over weak US dollar, and heighted Trump tariffs on China. MCX Gold June 5 contracts surged to a record high of Rs 95,935 per 10 grams on Thursday.

"Gold prices raced to an all-time high, driven by a weaker dollar, trade war tensions and concerns over global economic growth due to U.S. President Donald Trump's tariff plans which led to safe-haven inflows," said Manav Modi, Senior Analyst, Commodity Research at Motilal Oswal Financial services.

The latest rise in gold prices internationally is also attributed to strong demand, including from various central banks investing through ETFs. Persistent geopolitical tensions also boosted the yellow metal's appeal as a safe haven.

Reader Comments

P
Priya K.
Smart move by RBI! With all the global uncertainty, gold is definitely the safest bet right now. Our reserves are looking stronger than ever 💪
R
Rahul S.
While I understand the rationale behind gold reserves, I wonder if we're buying at peak prices. The timing seems risky with gold at all-time highs.
A
Anjali M.
Gold prices are crazy right now! My mom's old jewelry is worth more than we ever imagined. Maybe RBI knows something we don't about what's coming next...
S
Sanjay P.
This is why I've been telling my friends to invest in gold ETFs. The central banks are doing it, why shouldn't we? �
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Neha T.
Interesting to see how RBI's strategy aligns with other central banks. The global shift to gold says a lot about how institutions view the current economic climate.
V
Vikram J.
I appreciate RBI's conservative approach, but I hope they're also looking at diversifying into other assets. Over-reliance on any single commodity can be risky in the long run.

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Tags:
RBI gold reserves gold price surge forex reserves safe-haven demand central bank buying MCX gold
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