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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.
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. (ANI)
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