In a significant development underscoring India’s strengthened financial standing and the bullish trend in precious metals, the #ReserveBankOfIndia (RBI) reported a notable increase in the country’s gold reserves.
According to the latest weekly data released on Friday, India’s #GoldReserves grew by $342 million, reaching a total of $84.846 billion. This surge aligns with the broader upswing in both domestic and global bullion markets, reflecting heightened investor interest in safe-haven assets.
Special Drawing Rights and IMF Position Also Up
India’s external reserves saw gains not just in gold. The country’s #SpecialDrawingRights (SDRs) with the #InternationalMonetaryFund (IMF) also saw an uptick of $39 million, bringing the SDR holdings to $18.868 billion.
Moreover, India’s reserve position with the IMF increased by $107 million, now standing at $4.735 billion. These increments indicate a stronger and more diversified reserve profile at a time of rising global uncertainty.
Total Forex Reserves Near Record Highs
As of the week ending July 4, India’s #ForexReserves stood at $699.736 billion. Though this reflects a marginal dip from the previous week’s $702.784 billion, it remains near the historic all-time high of $704.885 billion recorded at the end of September 2024.
It’s important to note that the foreign currency assets—a key component of forex reserves—are influenced by fluctuations in the value of non-dollar currencies such as the euro, yen, and pound. These currency movements can either boost or reduce the dollar-equivalent value of the reserves.
Domestic Bullion Market Witnesses a Surge
Back home, India’s #BullionMarket mirrored the global trend with precious metal prices skyrocketing. On Friday, #GoldPrices in India climbed substantially. As per the India Bullion and Jewellers Association (IBJA):
-
24-carat gold surged by ₹465, reaching ₹97,511 per 10 grams, up from ₹97,046 the previous day.
-
22-carat gold was priced at ₹89,320 per 10 grams,
-
18-carat gold reached ₹73,133 per 10 grams.
