RBI’s Gold Reserves Surge: Purchases Touch 57.5 Tonnes in FY25, Second Highest in 7 Years

The Reserve Bank of India (RBI) has been steadily augmenting its gold reserves since December 2017. In the financial year 2024-25, the central bank added 57.5 tonnes of gold, marking the second-largest annual purchase in the past 7 years. 

According to a report by The Economic Times, this move underscores the RBI’s continued focus on diversifying its foreign exchange reserves.

Rise in RBI’s Total Gold Holdings

As per the data cited, the RBI’s gold stock stood at 879.6 tonnes as of March 2025, up from 822.1 tonnes a year earlier. This substantial increase reflects the growing importance of gold in central bank reserves amid evolving global financial conditions. The accumulation aligns with the broader trend of central banks across the world strengthening their gold holdings.

Global Uncertainties Drive Surge in Gold Prices

The period under review witnessed a sharp escalation in gold prices, driven largely by heightened global uncertainties. In April 2025, gold prices in India crossed an unprecedented ₹1 lakh per 10 grams, representing a 30% surge compared to ₹77,000 a year ago. Factors such as tariff wars, geopolitical tensions, and the volatility of the US dollar contributed to this historic rally.

Gold’s Safe-Haven Status Reinforced

Gold’s performance during periods of financial instability has historically reaffirmed its status as a safe-haven asset. During the 2008 financial crisis, gold appreciated by 21% even as equity markets collapsed. 

In 2024, amidst global market turbulence, gold prices climbed 24% in dollar terms, reaching $3,230 per ounce. This trend highlights gold’s low correlation with equities and bonds, offering stability to diversified portfolios.

Read More: Gold Prices on the Rise in India and Globally. 

Conclusion

The year 2023-24 saw the RBI adding 27.47 tonnes of gold to its reserves, in line with global central banks increasing their gold purchases. This shift comes in response to the continued weakness and volatility of the US dollar, particularly after significant political developments such as the re-election of US President Trump in November 2024.

Such moves underline the strategic role that gold continues to play in the reserve management strategies of central banks worldwide.

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