With an increase of 209% in gold in forex, in 6 years from 2018 till now, India’s foreign exchange reserves have escalated $700 billion.
From 21.15 US billion dollars on December 7, 2018, India’s Gold reserves has surged to 65.76 billion dollars. as of October 4. The data from the Reserve Bank of India (RBI) revealed the growth. Shaktikanta Das’s tenure as RBI Governor, which began in December 2018, coincides with this growth.
Meanwhile, India’s total foreign exchange reserves increased by 78%, totaling $701.176 billion from $393.735 billion.
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Additionally, the RBI’s gold holdings rose by 27.46 metric tonnes, reaching 822.10 metric tonnes in financial year 24, as noted in its “Half Yearly Report on Management of Forex Reserves.” The RBI also expatriated over 100 tonnes of gold from the UK, this year.
In terms of value, the share of gold in India’s total foreign exchange reserves increased to approximately 8.15% at the end of March 2024, up from about 7.81% a year earlier. Currently, 408.31 metric tonnes of gold are held domestically, while 387.26 metric tonnes are stored with the Bank of England and the Bank for International Settlements (BIS).
Gaining Rs 350 on the MCX, gold prices remained strong on Wednesday in the market. Comex gold traded above $2,675, marking a 0.55% increase. Traders are anticipating that the Federal Reserve will continue its path of interest rate cuts, sustaining bullish sentiment for the precious metal.
September observed the record high reach of Gold, however, has since been consolidating in the low-to-mid $2,600 per ounce range. Notably, the escalating situation in Middle East have contributed to the increased demand for gold as a safe haven.
An analyst from LKP Securities talked about the future performance of Gold. Jateen Triwedi, the analyst, highlighted that if the Federal Reserve maintains a serene stance and geopolitical tension continues, gold is likely to positive.
