RBI Gold Reserves Soar by Over $19 Billion Amid Global Instability

The Reserve Bank of India (RBI) has added $19.14 billion worth of gold to its reserves so far this fiscal. As of October 3, 2025, India’s gold holdings were valued at $98.77 billion, compared with $79.36 billion on April 4, 2025, as per the RBI data. The increase comes at a time when gold prices have been on an upward trend globally due to growing economic and geopolitical tensions.

Factors Behind the Rise

The rally in gold prices this year has been influenced by several international factors. These include the reintroduction of US tariffs under Donald Trump’s administration, the Ukraine-Russia conflict, and rising tensions in the Middle East. A weaker dollar and expectations of a possible rate cut by the US Federal Reserve have also supported demand for gold among central banks and investors.

Increase in RBI’s Gold Holdings

According to World Gold Council data, India’s gold reserves rose in quantity to 879.98 tonnes in Q2FY26, from 876.18 tonnes in Q4FY25 and 879.58 tonnes in Q1FY26. The RBI’s foreign exchange reserves comprise foreign currency assets, gold, Special Drawing Rights (SDRs), and India’s position with the International Monetary Fund (IMF).

Global Shift Toward Safe Assets

Central banks across several countries have increased their gold holdings this year amid volatility in currency and bond markets. Persistent inflation in major economies and uncertainty over trade policies have also contributed to the move toward gold, which is widely viewed as a stable store of value during economic disruptions.

Domestic Demand Adds to Momentum

In India, gold demand has risen with the start of the festive season. Purchases have increased during Diwali and Dhanteras, traditionally strong periods for gold buying. This has added to the overall demand for physical gold in the domestic market.

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Conclusion

The rise in India’s gold reserves shows a combination of global uncertainty and seasonal domestic demand. With economic risks and trade tensions continuing, gold remains a part of India’s overall reserve assets.

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