RBI’s Gold Reserves Cross $100 Billion for the First Time, Record High Share in Forex Reserves

India’s gold reserves have reached a historic milestone. For the first time, the Reserve Bank of India (RBI) holds gold worth over $100 billion, reflecting a growing share of gold in India’s total foreign exchange reserves. This surge highlights both rising gold prices and RBI’s strategic diversification efforts.

RBI Gold Reserves Cross $100 Billion

As of the week ending 10 October 2025, India’s gold reserves rose by $3.59 billion, pushing the total value to $102.36 billion. The latest RBI forex reserves report indicates that India’s total foreign exchange reserves, including dollars and other assets, stand at $697.78 billion.

Gold’s Share in Forex Reserves Hits 20-Year High

Gold now constitutes 14.7% of India’s total forex reserves, the highest share since 1996-97. Over the past decade, the gold portion has nearly doubled, rising from below 7% to almost 15%. This shift reflects RBI’s strategic move to reduce dependency on currencies like the dollar and euro while strengthening the stability of reserves.

RBI Purchased Less Gold in 2025

Interestingly, RBI’s actual gold purchases this year have been limited. According to the World Gold Council, between January and September 2025, RBI bought only 4 tons of gold, compared to 50 tons during the same period in 2024. Despite minimal purchases, the surge in gold prices pushed the reserves’ value past $100 billion.

Reasons Behind the Gold Price Surge

Gold prices internationally have increased by nearly 65% in 2025. Experts attribute this rise to:

• Economic uncertainty

• Efforts to reduce reliance on the US dollar

• Geopolitical tensions

• Growing investor preference for gold as a safe-haven asset

Kavita Chacko, Head of Research at the World Gold Council, said:
"The primary reason for the higher share of gold in India’s reserves is the surge in gold prices. Even with limited purchases by RBI, the value of gold has increased sharply."

Global Trend and India’s Role

Central banks worldwide are diversifying away from the dollar and increasing gold holdings. Countries like Russia, China, and Turkey have purchased significant gold in recent years to mitigate geopolitical risks and currency dependence.

India, the world’s second-largest consumer of gold, mostly imports its requirements. Beyond investment, gold holds cultural significance in Indian tradition, symbolizing wealth, prestige, and security.

Outlook for RBI Gold Reserves

Experts believe that if gold prices continue to rise, RBI’s gold reserves could become even more valuable in the near future. Additionally, RBI’s gradual diversification from the US dollar strengthens India’s economic security, providing a buffer against currency fluctuations and global market instability.