RBI’s gold pile tops $100 bn on surging prices, Pg21.

Key Highlights:

• India's gold reserves surpassed $100 billion for the first time, reaching $102.365 billion by October 10, 2025.
• Gold's share in India's total reserves rose to 14.7%, the highest since 1996-97.
• The RBI's gold purchases slowed in 2025, with only 4 tonnes bought from January to September, compared to 50 tonnes in the same period last year.
• Global gold prices have surged by about 65% in 2025, contributing to the increase in the value of India's gold reserves.

Detailed Insights:

• The increase in gold reserves is attributed to rising global gold prices and central bank accumulation over the past decade.
• Central banks globally are diversifying reserves away from the US dollar due to geopolitical risks and de-dollarisation trends.
• India's overall foreign exchange reserves decreased by $2.18 billion to $697.784 billion during the same week.
• Despite the slowdown in purchases, gold's share in India's foreign exchange reserves has almost doubled in the last decade.
• India is the world's second-largest consumer of gold, with gold playing a significant role in its culture as an investment and status symbol.

Key Concepts Involved:

• Foreign Exchange Reserves: Assets held by a central bank in foreign currencies, used to back liabilities and influence monetary policy.
• De-dollarisation: The process of reducing the US dollar's dominance in international trade, finance, and reserve holdings.
• Reserve Diversification: The strategy of central banks to allocate reserves across different asset classes and currencies to mitigate risk.