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Mumbai (Maharashtra) [India], April 19 (ANI): The Reserve Bank of India (RBI) reported a sharp rise in the value of its gold reserves for the week ending April 11, reflecting a global surge in gold prices.
According to data released by the RBI on Friday, the value of the central bank’s gold holdings has tripled over the past year, highlighting a significant increase in its gold purchases during this period.
As per the latest data, the value of RBI’s gold holdings surged by Rs 11,986 crore during the week ending April 11. As of that date, the total value of the RBI’s gold reserves stands at Rs 6,88,496 crore.
This increase comes at a time when central banks across the world are stepping up their gold purchases amid growing economic and geopolitical uncertainties. Gold is widely regarded as a safe-haven asset during volatile times, prompting central banks to add to their reserves as a protective measure.
The consistent rise in India’s foreign exchange reserves, along with the jump in the value of gold reserves, underscores the RBI’s strong position in managing external shocks. It also reflects a broader global trend of central banks boosting their gold assets to hedge against global risks.
There’s no looking back for safe-haven gold amid the global trade uncertainties that have emanated from Trump administration’s reciprocal tariffs and Chinese counter tariffs.
Gold prices on the Multi Commodity Exchange of India (MCX) touched yet another record high over weak US dollar, and heightened Trump tariffs on China. MCX Gold June 5 contracts surged to a record high of Rs 95,935 per 10 grams on Thursday.
“Gold prices raced to an all-time high, driven by a weaker dollar, trade war tensions and concerns over global economic growth due to U.S. 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 latest rise in gold prices internationally is also attributed to strong demand, including from various central banks investing through ETFs. Persistent geopolitical tensions also boosted the yellow metal’s appeal as a safe haven.
Gold gains 25% in 2025; outlook remains firm: Motilal Oswal
New Delhi [India], April 20 (ANI): Gold has delivered a stellar performance in the first four months of 2025, gaining nearly 25 per cent and marking all-time highs on both MCX and COMEX.
Silver has also followed suit with a 15 per cent price gain on COMEX.
This sharp rally is attributed to a combination of heightened geopolitical risks, trade tensions—particularly between the U.S. and China—and a surge in safe-haven demand from both institutional and retail investors, Motilal Oswal Financial Services Ltd (MOFSL) said in a report.
The outlook for gold remains constructive, Motilal Oswal said.
Persistent trade tensions, inflationary pressures, and central bank gold purchases are expected to continue supporting prices.
As per Motilal Oswal, technical levels indicate strong support for gold around Rs 91,000 per 10 grams and resistance near Rs 99,000 on MCX, while on COMEX, key levels to watch are USD 3,100 per ounce and USD 3,400.
With the global economy navigating through policy uncertainty and slowing growth, gold is likely to remain an attractive asset class.
“In an environment dominated by policy uncertainty, inflationary pressures, and volatile geopolitics, gold continues to be a beacon of stability. As central banks bolster their reserves and investors seek safety, we believe gold will remain a favoured asset. Barring any significant resolution in global trade tensions, we maintain a ‘buy on dips’ view from a medium to long-term perspective,” said Navneet Damani, Group Senior Vice President, Head Commodity and Currency Research, Motilal Oswal Financial Services.
Gold’s momentum has notably outpaced silver’s so far this year, both in terms of scale and pace.
Following recent comments from President Trump regarding higher tariffs on Chinese goods, gold briefly corrected but quickly recovered—demonstrating resilience and investor confidence.
The Trump administration’s aggressive trade stance has targeted dozens of trading partners, with particularly steep tariffs imposed on China (up to 245 per cent), prompting retaliatory measures from Beijing.
This has led to market-wide concerns of a prolonged slowdown or potential stagflation in the U.S. economy.
Further compounding these risks is a weakening US dollar, which has declined by over 7 per cent against major global currencies this year.
“Central banks, especially in emerging markets like China, have been steadily increasing their gold reserves, further bolstering demand and price stability,” MOFSL said.
The Federal Reserve’s monetary policy has also influenced market sentiment. After three interest rate cuts in 2024, the Fed has taken a “wait and watch” approach in 2025 to assess the economic fallout from ongoing trade policies.
While President Trump has openly advocated for further rate reductions to stimulate growth, Fed Chair Jerome Powell has maintained a cautious stance, citing inflationary risks from tariffs and broader economic uncertainties.
“However, the broader global macroeconomic environment continues to favour gold and other safe-haven assets. Unless a meaningful resolution to global trade disputes is reached, the upward trajectory for bullion prices appears well-supported in the medium to long term,” MOFSL added. (ANI)
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