RBI has increased its gold hoard in 2024, & may acquire more

The Reserve Bank of India (RBI) has increased its gold reserves by approximately 1 percent in 2024, reflecting a strategy to diversify reserves amid global geopolitical uncertainties. \r

As of June 7, RBI's gold reserves stood at $56.982 billion, comprising 8.69 percent of total reserves, up from $48.328 billion or 7.76 percent at the end of December 2023. Experts attribute this move to safeguarding against trade tensions, political instability, and conflicts like the Russia-Ukraine war. \r

Central banks globally have similarly bolstered gold reserves since recent geopolitical crises, viewing gold as a stable asset during turbulent times. The RBI's recent repatriation of over 100 tonnes of gold from the UK also underscores efforts to enhance logistical flexibility and diversify storage options. \r

Looking ahead, experts anticipate continued gold accumulation by central banks as a hedge against ongoing geopolitical risks.