RBI’s Strategic Gold Accumulation

In November 2024, the Reserve Bank of India (RBI) added 8 tonnes of gold to its reserves, bringing the total for the year to 73 tonnes and elevating India’s gold holdings to 876 tonnes. This positions India as the second-largest gold buyer globally in 2024, following Poland’s 21-tonne addition.

Global Central Bank Gold Purchases

In November 2024, central banks worldwide collectively added 53 tonnes of gold to their reserves. Poland led with 21 tonnes, while other significant contributors included Uzbekistan (9 tonnes), Kazakhstan (5 tonnes), and China (5 tonnes).

RBI’s Gold Reserve Strategy

The RBI’s decision to increase its gold reserves aligns with a broader trend among central banks to bolster holdings of safe-haven assets amid global economic uncertainties. This strategy aims to hedge against inflation and mitigate foreign currency risks.

Impact on Global Gold Prices

The substantial gold purchases by central banks, including the RBI, have influenced global gold prices. The World Gold Council notes that the decline in gold prices following the U.S. election may have prompted some central banks to accelerate their gold acquisitions in November.

RBI’s Gold Holdings Distribution

As of November 2024, the RBI’s total gold reserves stood at 876 tonnes. Approximately 510 tonnes are held within India, while the remaining 366 tonnes are stored overseas, primarily with the Bank of England and the Bank for International Settlements.

Summary of the news

Why in News	Key Points
RBI added 8 tonnes of gold to its reserves in November 2024	– RBI increased gold reserves to 876 tonnes in total.
	– India became the second-largest global gold buyer in 2024.
	– The gold purchases by India are part of a broader trend of central banks increasing gold reserves.
	– Approximately 510 tonnes of India’s gold is stored domestically, and 366 tonnes are stored abroad.
	– Other countries like Poland, Uzbekistan, and China also made significant gold purchases.
India’s Gold Reserve (as of November 2024)	Total Gold Reserves: 876 tonnes
	Domestic Gold Reserve: 510 tonnes
	Foreign Gold Reserve: 366 tonnes (Bank of England, BIS)
Related Global Trends	– Global central banks bought 53 tonnes of gold in November 2024.
	– Poland, the leading buyer, added 21 tonnes.
RBI’s Strategy	– RBI’s gold purchases are a move to hedge against inflation and foreign currency risks.
Impact on Gold Market	– Global gold prices influenced by central banks’ gold purchases.