New Delhi. Writing a new chapter in its economic security strategy, India has taken its gold reserves beyond $100 billion for the first time to $105.53 billion. According to RBI, after the recent purchases its estimated value has increased to $ 108.5 billion. RBI recently bought 25.45 tonnes of gold, taking the total reserves to 880.18 tonnes. The share of gold in foreign exchange reserves has increased to 14.7 percent. According to the World Gold Council (WGC), this achievement is not only important from an economic point of view, but also reflects India’s commitment to financial sovereignty and long-term stability amid global uncertainties.

Prithvi Singh, Commodity Strategist, HDFC Securities, said, India’s move is important towards developing a self-reliant currency security mechanism in the dollar-dependent global system. It is a financial shield amid increasing risks.

A policy of long-term security, not short-term protection.
According to the WGC, India has been the leading gold buyer among global central banks for some years now. RBI has increased reliance on gold to diversify foreign exchange reserves, reduce dependence on the dollar. This strategy is a clear indication that India’s priority is not merely to avoid short-term market fluctuations, but to create long-term economic security and a sustainable monetary framework.

That’s why the importance of yellow metal is increasing
The global financial system is currently in a phase of transition. The Russia-Ukraine war, China-US competition, the Middle East crisis and changing energy-trade equations have increased volatility in international markets. In such a situation, gold has again come to the center stage as a universal safe asset. India’s strategy is now moving towards a multi-asset reserve framework instead of the traditional dollar-centric reserve model.

Professor Nitin Verma of IIM Bangalore said, India is creating a multi-layer financial security structure in an era of global instability. At the policy level, this is being considered as a decisive step towards protection from foreign shocks and strong currency sovereignty.

Hints for investors
Economic experts believe that even for ordinary investors, gold can provide a stable security cover of 5-10 per cent in long-term asset allocation.

That’s why prices are rising
Gold has been witnessing an almost continuous rise in the last two years. The main reasons are…
Heavy purchases by Central Banks.
Geo-political tensions.
Ongoing uncertainty regarding US inflation and interest rates.
Fluctuations in the dollar index.
WGC says, many emerging economies are also increasing gold reserves. When the world is unstable, countries keep their money in something whose value will always remain and that is gold.