India has struck gold—literally. For the first time in history, the country’s gold reserves have crossed the $100 billion (Rs8.5 lakh crore) mark, reflecting both the global rally in gold prices and the Reserve Bank of India’s long-term strategy to diversify its foreign exchange portfolio.
Historic High as Gold Shines Globally
According to the latest RBI data, India’s gold holdings jumped by $3.595 billion (around Rs30,500 crore) in the week ending October 10, 2025, bringing the total to an all-time high of $102.365 billion (Rs8.69 lakh crore).
This record surge comes amid unprecedented global gold prices, which have hit $4,300 per ounce, driven by sustained demand from central banks, geopolitical tensions, and investor appetite for safe-haven assets. The rally has significantly boosted the valuation of gold reserves held by central banks across the world — and India is no exception.
Forex Reserves Take a Small Dip
Despite the golden rise, India’s overall foreign exchange reserves dipped by $2.17 billion (nearly ₹18,400 crore) to $697.78 billion (₹59.3 lakh crore) in the same week.
The decline was largely attributed to a fall in foreign currency assets (FCA), which dropped by $5.6 billion (Rs47,500 crore) to $572.10 billion (Rs48.6 lakh crore). In addition, Special Drawing Rights (SDRs) fell by $130 million (Rs1,100 crore), while India’s IMF reserve position decreased by $36 million (Rs300 crore), as per the RBI’s weekly bulletin.
RBI’s Gold Buying Slows, But Value Skyrockets
Interestingly, despite this surge in valuation, the RBI has significantly slowed down gold purchases this year. Data from the World Gold Council (WGC) reveals that the central bank added only 4 tonnes of gold between January and September 2025, compared to 50 tonnes during the same period in 2024.
However, the rally in gold prices has more than compensated for this slower pace of accumulation. Gold now accounts for 14.7% of India’s total forex reserves — the highest share in almost three decades, since 1996–97.
Why This Milestone Matters
Gold’s growing weight in India’s reserves highlights a strategic shift in how the RBI is managing the country’s financial stability. Traditionally seen as a hedge against inflation and currency depreciation, gold acts as a safe-haven asset during times of global volatility.
With the rupee facing pressure from a strong U.S. dollar and geopolitical uncertainties continuing to rattle markets, the surge in gold valuation has strengthened India’s external balance sheet.
A Golden Cushion for a Volatile World
Experts say this record valuation enhances India’s financial resilience. The RBI’s strategy of holding diversified assets — including gold, dollars, and other currencies — helps it maintain market stability and support the rupee during turbulent times.
While India’s forex reserves remain among the top five globally, the gold milestone adds an extra layer of confidence to the country’s economic foundation — a testament to both prudent policy and the timeless allure of gold.
