RBI's gold reserves have crossed $80B mark this year
What's the story
The Reserve Bank of India (RBI) has significantly increased its gold reserves in the first half of 2025, owing to rising global and domestic uncertainties. The reserves have grown to $83.316 billion on June 13, up from $67.092 billion on January 3. Since Sanjay Malhotra took over as the new RBI Governor on December 11, 2024, these reserves have increased by a huge margin.
Reserve
How much gold is stored?
The RBI's annual report shows that the total gold held by the central bank was 879.58 metric tons on March 31, 2025, up from 822.10 metric tons a year earlier. This marks an annual increase of 57.48 metric tons in India's gold reserves.
Market impact
Global uncertainties have grown
Since the start of 2025, global uncertainties have grown with events like US tariffs, India-Pakistan tensions, and Israel-Iran conflict. These developments have impacted the Dollar index, Brent crude oil prices, and the Indian Rupee. They have also raised risk aversion among investors and central banks worldwide who are now turning to safer assets such as gold.
Demand surge
Central banks have strong appetite for gold
The World Gold Council Survey 2025 shows that central banks continue to have a strong appetite for gold amid heightened volatility and uncertainty. "As the world becomes increasingly volatile and unpredictable, gold's safety, liquidity and return characteristics—the three key investment objectives for central banks—have risen in importance," said the World Gold Council.