Mumbai India’s gold reserves have surged to $65.76 billion as of October 4, 2024, compared to $21.15 billion on December 7, 2018. This represents an astonishing increase of over 209% in the share of gold within the country’s foreign exchange reserves, according to the latest data from the Reserve Bank of India (RBI).
This significant growth in gold reserves comes as India’s total foreign exchange reserves surpassed the $700 billion mark, reaching $701.176 billion on October 4, 2024, up from $393.735 billion in December 20181. The increase in gold holdings has been a strategic move under the tenure of RBI Governor Shaktikanta Das, who assumed office in December 2018.
The RBI’s “Half Yearly Report on Management of Foreign Exchange Reserves” revealed that the central bank’s gold holdings increased by 27.46 metric tonnes to 822.10 metric tonnes in FY24. Additionally, the RBI repatriated over 100 tonnes of gold from the UK this year.
The value of gold in India’s forex reserves has also seen a notable rise, accounting for approximately 8.15% of the total reserves as of March 2024, up from about 7.81% in March 20231. This increase is attributed to both the strategic acquisition of gold and the sustained bullish sentiment in global gold markets, driven by geopolitical uncertainties and expectations of continued interest rate cuts by the Federal Reserve.
Industry experts highlight that the elevated gold prices, which have been trading above $2,600 per ounce, have further bolstered the value of India’s gold reserves1. The geopolitical situation in the Middle East and the Federal Reserve’s dovish stance have contributed to the ongoing demand for gold as a safe-haven asset.
