look news india
Mumbai: The Reserve Bank of India (RBI) continued to increase its gold reserves by purchasing 57.50 tonnes of gold in the end financial year 2024-25. Global financial uncertainty has also led to a rapid increase in gold prices recently.
Not only RBI but most central banks in the world are buying gold as safe investment.
Sources in the Reserve Bank said that the purchase for the last financial year is the second largest procurement in any financial year since the creation of gold reserves in December 2017. Earlier in FY 2021-22, the Reserve Bank bought 66 tonnes of gold, which was the biggest purchase ever.
Central banks around the world have been motivated to buy more gold due to geopolitical uncertainty, US dollar price volatility, and concerns about US government bonds.
At the end of March 2025, the Reserve Bank had a total gold reserves of 879.60 tonnes, which was 822.10 tonnes at the end of March 2024. At the end of FY 2020, the Reserve Bank had a total of 653 tonnes of gold. Since Donald Trump was elected President in the US, the dollar has seen heavy fluctuations, resulting in an appeal for safe investment in gold.
Gold share is increasing in India’s foreign exchange reserves. The price of gold in foreign exchange reserves has increased as gold prices have increased by more than 30 percent last year.