India’s central bank saw a sharp jump in the value of its gold reserves during the week ending April 11, driven by a global rally in gold prices amid heightened geopolitical and economic uncertainty.

According to data released by the Reserve Bank of India (RBI) on Friday, the value of its gold holdings surged by Rs 11,986 crore in just one week. With this increase, the total value of RBI’s gold reserves has risen to Rs 6,88,496 crore, reported ANI.

This sharp increase also reflects a broader trend over the past year. The RBI’s gold holdings have nearly tripled in value during this period, underlining a significant rise in gold purchases by the central bank.

This comes at a time when central banks worldwide are stepping up their gold accumulation to hedge against global risks.

Gold continues to be seen as a safe-haven asset during periods of uncertainty. The ongoing global trade tensions, particularly those linked to tariff disputes between the US and China, along with concerns over a weakening US dollar, have pushed central banks to increase their gold exposure.
On the domestic front, gold futures on the Multi Commodity Exchange of India (MCX) hit fresh record highs. The June 5 contract soared to Rs 95,935 per 10 grams on Thursday. The surge has been attributed to safe-haven demand spurred by the Trump administration’s tariff policy and retaliatory measures from China.

“Gold prices raced to an all-time high, driven by a weaker dollar, trade war tensions and concerns over global economic growth due to US President Donald Trump's tariff plans, which led to safe-haven inflows,” said Manav Modi, senior analyst, commodity research at Motilal Oswal Financial Services.

The RBI’s increasing gold reserves, coupled with a steady rise in overall foreign exchange reserves, point to a more resilient position in managing external shocks. Growing interest in gold-backed ETFs and central bank buying amid persistent geopolitical concerns has further fuelled the yellow metal’s upward trajectory globally.

Courtesy: TOI