Gold has always been considered as safe hasn. That is, whenever something bad happens in the world or is going to happen, then big investors from all over the world invest all their money in gold. This is the reason that whenever the situation between two countries is serious, the prices of gold starts increasing. But, this time the matter is something else. Let us know why the countries of Europe are asking for their gold back.

Why are the countries of Europe asking for gold

In fact, US President Donald Trump’s possible return to power has alerted the countries of Europe to its gold reserves. Now the voice is raising from many European countries that their gold kept in America should either be brought back or should be fully examined and audited.

Why EU’s gold in America’s chests?

European countries like Germany, Italy and France stor their large part of their large parts at the Federal Reserve Bank of New York in the US or Bank of England in London. There are historical and economic reasons behind this, such as the instability after World War II and reliable system in international transactions.

Taxpayers Association of Europe (TAE) open appeal

Taxpayers Association of Europe (TAE) has clearly stated that European countries should get their gold back from America or at least its inventory and independent audit. TAE believes that gold is not required to come back in its own country, but it should have complete reach and transparency.

Why worry about Trump and US Federal Reserve?

The report said that Trump has repeatedly questioned the freedom of US Federal Reserve, especially on interest rates. Trump wanted the Fed to be more directly under the control of the White House. In such a situation, there is a possibility that if the US says that returning their gold to foreign countries is “unfair”, then what will happen? For example, German MPs were not allowed to see gold kept in the American chest earlier, which raised questions on transparency.

Where is the gold of Europe kept?

Although it is not public that how much gold of EU countries is kept in the US or London, according to reports, about half of the Gold of Germany is in the 80 feet deep vault of the Federal Reserve Bank of New York, which is located under the rocks of Manhaton.

Why is the demand for gold increasing?

In the last three years, 2022, 2023 and 2024, central banks from all over the world bought more than 1000 tonnes of gold every year, which is more than the average of the previous decade (400–500 tons). Two big reasons are being considered behind this. The first rising inflation and the second international political instability. The European Central Bank report states that gold has now become a big foreign exchange reserve asset than the Euro.

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Gold Price: Gold prices have now reached their peak and in the next two months it can fall by 12 to 15 percent. No one else has expressed this estimate by Quant Mutual Fund. However, the fund says that gold will still be important for medium and long -term investors.

Gold fall in gold

If you look at the current situation, the price of gold in the retail market on Tuesday was Rs 96,960 per 10 grams. It reached 99,868 after adding GST. But if analysts believe, then these prices can go down significantly in the coming weeks.

Morningstar’s big claim

The US -based financial analyst group Morningstar has made even a bigger claim. He has said that in the coming few years, it is possible to fall by 38 percent in gold prices.

Prices increased, sales of jewelry decreased

Increasing gold prices have affected the sale of jewelers. According to the India Bullion and Jewelers Association (IBJA), there has been a 30 per cent decline in sales of gold jewelery in India in the last 15 days. The biggest reason for this is a rise of up to 5 percent prices.

Enthusiasm after Akshaya Tritiya

Talking to IBJA National Secretary Surendra Mehta Economic Times, he says that there was a little demand during the first week of May, ie Akshaya Tritiya, because at that time gold had fallen to Rs 92,365 per 10 grams. But after that prices started climbing again and due to this the buyers started retreating.

So why was gold increased?

The reason for recent boom was global economic uncertainty, fear over inflation and geopolitical stress. Trade disputes between the US-China also turned investors towards gold. But now the same factor can work to push the prices down.

Actually, tension between the US and China seems to be deepening again. Donald Trump has accused China of breaking the terms of the agreement. This week, a phone call is being expected between Trump and Chinese President Xi Jinping. The market is closely monitoring this.

Europe also angry

On the other hand, the European Union is pressurizing the US to reduce fees. But the US is proceeding on the plan to impose 50 percent tax on steel and aluminum. Not only this, the US is seeking a hurry on trade proposals from other countries so that the talks can be intensified.

What to do investors?

Quant Mutual Fund suggests that gold should remain in your portfolio, but it would be better to be cautious for the next few months. Those who have bought at high prices, be mentally prepared for the decline.

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The Central Bank of India, the Reserve Bank of India (RBI), has increased its gold reserve in the second half of FY 2024-25. The RBI bought about 25 tonnes of gold during this period, causing India’s total gold reserves to 879.59 tonnes by the end of March 2025. In the end of September 2024, the figure was 854.73 tonnes.

The highest annual purchase in 7 years

Talking about the entire FY25, RBI bought more than 57 tonnes of gold, which is the highest annual purchase in the last seven years. The special thing is that this purchase has been done at a time when gold prices were seen in the global markets about 30 percent.

Where has RBI kept so much gold?

According to the RBI official Half-Ailly report, 511.99 tonnes of gold has been kept in India by March 2025. At the same time, 348.62 tonnes of gold has been preserved in England’s Bank of England and Bank for International Settlements (BIS). While 18.98 tonnes of gold is in the form of gold deposits.

The biggest domestic transfer since 1991

In the first half of FY25, RBI transferred its big part of Gold Reserve to India. The storage which was around 408 tonnes by 31 March 2024 increased to 510.46 tonnes by September 2024. It is considered to be the biggest domestic gold movement after 1991. At that time, India had to mortgage its gold while struggling with the foreign exchange crisis.

Foreign exchange reserves decreased, but gold stake increased

India’s total foreign exchange reserves have come down to $ 668.33 billion at the end of March 2025, while in September 2024 it was $ 705.78 billion. However, despite this decline, gold’s stake has increased from 9.32 percent to 11.70 percent. Through this Forex Reserve, India can cover the import of 10.5 months, which is slightly less than before. This cover was 11.8 months in September 2024.

Why did RBI do such a big gold investment?

This step has been taken keeping in mind the global geopolitical stress and international economic uncertainties. Gold is always considered a safe investment and in the current international situation, RBI wants to make its reserve safe and diverse.

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Gold prices in India are now coming down from their all -time high one lakh. In such a situation, there is a question in the minds of many people whether it is right to buy gold at this time or should wait for the price to fall. Talking about 4 May 2025 today, there is no news of any major change in gold prices in India on this day.

In Mumbai today, the price of 22 carat gold was 87,550 per 10 grams and 24 carat gold was 95,510 per 10 grams. Comparison, the same rates on Friday were 87,740 and 95,720 per 10 grams, that is, there has been a slight decline in them as compared to Friday.

What gold rate in other cities of the country

In Delhi and Jaipur, 22 carat gold is being sold at 87,700 and 24 carat at Rs 95,660 per 10 grams. In Ahmedabad and Patna, 22 carat gold is being sold at 87,600 and 24 carat at Rs 95,560 per 10 grams. In cities like Mumbai, Hyderabad, Chennai, Bangalore and Kolkata, the price of 22 carat gold is 87,550 and 24 carat gold at 95,510 per 10 grams. Along with gold, silver prices also remained stable. In Mumbai today, silver remained at the level of 98,000 per kg, which is the same as Friday.

Because of which the prices of gold and silver are affected

According to experts, the prices of gold and silver in India depend on the international market, import duty, government tax, and the exchange rate between dollars and rupees. Apart from this, the cultural and family importance of gold in India also determines its demand, especially in the wedding and festivals.

If we look at the current situation in the market, investors and jewelry buyers should keep an eye on the ups and downs in the prices. Gold prices are currently about 7,000 below their highest level, causing some experts to consider it a suitable opportunity for shopping.

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