India's Central Bank Sees Sharp Increase in Gold Reserves

India’s central bank, the Reserve Bank of India (RBI), experienced a significant surge in the value of its gold reserves during the week ending April 11. This jump was primarily driven by a global rally in gold prices, fueled by heightened geopolitical and economic uncertainty.

Record Highs in Gold Futures

On the domestic front, gold futures on the Multi Commodity Exchange of India (MCX) reached new record highs, with the June 5 contract soaring to Rs 95,935 per 10 grams. Analysts attribute this surge to safe-haven demand, spurred by international trade tensions and retaliatory measures.

Global Trend of Gold Accumulation

The RBI's increasing gold reserves reflect a broader global trend among central banks to hedge against global risks. With gold's reputation as a safe-haven asset during periods of uncertainty, central banks worldwide are stepping up their gold accumulation.

Expert Insight

"Gold prices raced to an all-time high, driven by a weaker dollar, trade war tensions, and concerns over global economic growth," said Manav Modi, senior analyst at Motilal Oswal Financial Services.

Strengthening India's Economic Resilience

The RBI’s growing gold reserves, alongside a steady rise in overall foreign exchange reserves, underscore India's strengthening position to manage external shocks. This trend is further supported by growing interest in gold-backed ETFs and persistent geopolitical concerns fueling gold's upward trajectory globally.