RBI Gold Purchases of 57.5 Tonnes in FY25
Why in the news
The RBI kept building its gold stock in FY25 as global risks, a shaky dollar and weaker appeal of US Treasuries pushed central banks towards bullion.
Key facts
- Buying of 57.5 tonnes trails only the 66 tonnes of FY22.
- Holdings: 822.1 to 879.6 tonnes; share in forex reserves: 8.7% to 11.8%.
- A 30% rise in global gold prices lifted the value of existing stock.
- RBI rarely sells gold and ranks safety and liquidity above returns.
Global drivers
- A volatile dollar, notably after Trump’s re-election in November 2024.
- Central banks seek safety and inflation cover; the World Gold Council called them pivotal to 2024 demand.
Pace
- Buying slowed in December and February, below the 6.6 tonnes a month average of January-November 2024, hinting at a calibrated approach.
Exam angle
- Reserve goals: safety, liquidity, then returns.
- FY22 peak: 66 tonnes.