Gold Reserves: Amidst the ever increasing prices of gold, everyone’s attraction towards it is increasing. Central banks around the world are also purchasing gold extensively and reserves are being increased. This is believed to be the largest stockpile expansion in decades. However, this step is not being taken just because there is going to be a shortage of gold or there is some kind of fear, but it is a strategic decision.

Why is the stock being increased?

At a time when geopolitical tensions and economic instability persist, gold is considered the safest option for investment. According to market experts, this rise in gold prices will continue next year also. According to Morgan Stanley, the price of gold may reach $ 4,900 per ounce in the year 2026. Goldman Sachs says that when traditional currencies fall, the prices of gold and Bitcoin go up rapidly. RBI is expected to purchase about 900 tonnes of gold in the year 2025, which is more than the average for the fourth consecutive year.

According to Manoranjan Sharma, Chief Economist of Informatics Ratings, this increase in gold purchasing is different from the traditional pattern. He says that much of the gold reserves are driven by de-dollarisation efforts, especially in emerging markets such as China, India, Russia, Turkey and many Middle Eastern countries.

Doubt on traditional currencies

Another reason is that according to the IMF’s COFER database, the US dollar still holds about 58 percent of global reserves, but its dominance is gradually decreasing. This dominance position of the dollar is now facing challenge not only for economic reasons but also for political reasons. Recent financial sanctions imposed on Russia and the possibility of similar measures being taken against other countries have made many governments hesitant to invest heavily in US assets.

On the contrary, gold is outside this entire system. It can be stored domestically, sold and bought globally, and is not bound by the policies of any one country. This is why gold has become particularly attractive for emerging economies, which want to protect themselves from the influence of Western monetary power.

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Gold Reserve in India: Amid financial and geopolitical uncertainties globally, gold prices are witnessing a tremendous rise. The reason behind this rise is not only the purchase of jewelery by investors but also the increase in gold reserves by countries around the world.

The rising price of gold can be gauged from the fact that in the financial year 2023-24, gold was being sold at around Rs 70,000 per tola, whereas now in 2025 it has crossed Rs 1,05,000 per 10 grams. Its reasons include geopolitical tensions, economic uncertainties, monetary policies and inflationary pressures.

India’s gold reserves

India is also increasing its gold reserves rapidly. According to RBI, the total gold reserves in the country have reached 880 tonnes by October 8, 2025, which includes reserves in Nagpur and Mumbai. Apart from this, part of India’s gold reserves are also kept in the Bank of England and the Bank of International Settlements.

India has increased its gold reserves by about 58% in the last decade. In 2015, India had 557.7 tonnes of gold, which has now increased to 880 tonnes in 2025. Especially after 2022, India strategically increased its gold reserves keeping in mind the global trends and economic security.

China’s gold reserve

China has also aggressively increased its gold reserves. In 2025, China purchased 39.2 tonnes of gold only from January to September. By October 8, 2025, China’s total gold reserves have reached 2,298.5 tons. On average, China has increased gold reserves by 2 to 5 tonnes every month, although only 0.4 tonnes were purchased in September. In this way, the increase in investment and reserves in gold at the global and domestic level is becoming the main reason for the continuous rise in its prices.

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India Forex Reserve Drops: At a time when there is a high American tariff on India and the H1B visa fees have been increased, despite these adverse circumstances, every possible steps are being taken by the Central Government to speed up the economy. One of those steps is GST Reform and Free Trade Agreement with other countries including Britain. But despite the strength on the economic front, while the Indian currency went on all time low recently compared to the US dollar, on the other side another disappointing news has come out. Hearing this, the neighboring enemy country will be happy with Pakistan as well as China.

Foreign exchange reserves decreased

In fact, the country’s foreign exchange reserves declined by $ 39.6 million to $ 702.57 billion in the week ended September 19. Information was given by the Reserve Bank of India (RBI) on Friday. A week before this, the total foreign exchange reserves of the country increased by $ 4.69 billion to $ 702.97 billion.

According to the Reserve Bank data, foreign exchange assets, considered to be the major component of currency reserves in the week ended September 19, declined by $ 86.4 million to $ 586.15 billion.

Why did there be a shortage?

Forex assets expressed in terms of dollars include the effect of price growth or depreciation in non-American currencies such as euros, pounds and yen. According to the central bank, the country’s gold reserves increased by $ 36 million to $ 92.77 billion in the current week. During this period, special drawing rights (SDR) rose $ 10.5 million to $ 18.87 billion. According to the Reserve Bank data, India’s reserved reserves in the International Monetary Fund increased by $ 296 billion in the week under review.

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India’s Forex Reserves: There has been a tremendous increase in the country’s currency reserves. During the week ended on 6 June 2025, the foreign currency reserves i.e. Forex Reserve have witnessed a tremendous jump of $ 5.17 billion and it has reached $ 696.65 billion. However, during the week ended on May 30, a week ago, the foreign exchange reserves saw a decrease of $ 1.24 billion and it had come down to $ 691.485. Foreign exchange reserves were at a record high with $ 704.885 billion during the week ended on 27 September 2024.

Increased gold reserve

According to RBI, during the week ended June 6, there has been a great increase of 1.583 billion in the gold reserve ie gold reserves. After this, the stock of gold was $ 85.888 billion. Whereas, during the week ended May 30, the Gold Reserve increased by $ 723 million.

According to the latest data released by the Central Reserve Bank, the Forex Asset has increased by $ 3.47 billion to $ 587.68 billion during the week ended June 6. These include non -American currencies like pounds, euros, yans.

Along with this, the foreign currency asset i.e. foreign exchange assets have increased by $ 3.47 billion in the last week ended June 6. After this increase, FCA has now increased to $ 587.68 billion. The highest part of FCA is in foreign exchange reserves.

Significantly, such an increase is a positive sign for any country. These reserves are also an important measure of measuring the economic strength of a country, which helps to keep foreign debt repayment, import expenses and currency stability.

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