RBI bought 57.5 tonnes of gold in FY25, second highest in seven years, says report

Gold

The Reserve Bank of India (RBI) bought 57.5 tonnes of gold during the last fiscal, the second-highest purchase in a year since the central bank started accumulating the precious metal in December 2017, The Economic Times reported citing data from the central bank.

As per the data cited by the report, RBI's total stock of gold stood at 879.6 tonnes as of March 2025, a significant rise from the 822.1 tonnes recorded a year ago. This comes as the yellow metal’s prices skyrocketed as investors shifted to safe haven assets amid global uncertainties.

During 2023-24, the RBI had added 27.47 tonnes of gold to its reserves, at a time when central banks all over the world have been increasing their gold purchases, given the US dollar’s continued weakness amid global uncertainties. The greenback has been significantly volatile since US President Trump’s election in November 2024, adding to the safe-haven appeal of the yellow metal.

In April 2025, gold prices in India crossed a historic threshold, soaring past Rs 1 lakh per 10 grams, a staggering 30 percent surge from Rs 77,000 a year ago. This rally, driven by global uncertainties, tariff wars and a weaker US dollar, has reaffirmed gold’s status as a safe-haven asset.

Gold's allure lies in its low correlation with equities and bonds, making it a buffer against market volatility. During the 2008 financial crisis, gold rose 21 percent while equities tanked. In 2024, as global markets wobbled, gold’s 24 percent climb in dollar terms ($3,230 per ounce) cushioned portfolios.

Amit Pabari, managing director at CR Forex Advisors, had earlier said that rising gold prices will revalue the RBI’s gold holdings, further enhancing the overall value of its reserves. At the same time, major central banks including the RBI are strategically shifting away from the dollar due to growing concerns over the rising US debt and the potential risk of a default.