New Delhi: In a major boost to its gold reserves, the Reserve Bank of India (RBI) purchased 27 tonnes of gold in October 2024, outpacing most central banks worldwide. This acquisition marks the highest monthly purchase by any central bank globally during the period and brings India’s total gold reserves to an impressive 882 tonnes.
India’s Strategic Gold Reserves
Of the total 882 tonnes, 510 tonnes are stored domestically, reinforcing India’s strategic financial security. The World Gold Council (WGC), in its latest report released on Thursday, highlighted that central banks worldwide collectively bought 60 tonnes of gold in October. Among them, the RBI ranked second, trailing Turkey, which acquired 17 tonnes, while Poland secured the third spot.
Notably, central banks in India, Poland, and Turkey accounted for 60% of the total global gold purchases in October.
RBI Leads Emerging Market Surge
The report underscores the dominance of emerging economies in global gold purchases. From January to October 2024, the RBI bought a total of 77 tonnes of gold, five times more than its acquisitions during the same period last year. This surge in gold purchases aligns with India’s strategy to strengthen its economic resilience amid global financial uncertainties.
Turkey added 72 tonnes of gold to its reserves this year, while Poland increased its reserves by 62 tonnes, reflecting a similar trend among developing nations.
Global Gold Purchase Trends
China and Azerbaijan secured the fourth and fifth positions, respectively, in October’s gold-buying spree. Kazakhstan, after selling gold for five consecutive months, re-entered the market with fresh purchases.
Conversely, some nations, including Singapore, reduced their gold holdings. Countries like Germany, Mongolia, Jordan, Thailand, and the Philippines also sold gold in October, highlighting diverse approaches to reserve management across regions.
Why Gold Matters
The growing preference for gold among emerging economies like India, Turkey, and Poland signals a shift toward diversifying reserves and mitigating risks associated with global currency fluctuations. Gold remains a crucial asset for central banks, providing stability and acting as a hedge against economic uncertainties.
As global central banks navigate volatile financial landscapes, the RBI’s strategic acquisition reinforces its position as a key player in the global financial ecosystem.
