The Reserve Bank of India (RBI) significantly increased its gold purchases in June. According to data released by the RBI, it purchased 9.3 tonnes of gold during the month.
The World Gold Council (WGC) estimates this was the highest monthly purchase in nearly two years, based on an average monthly purchase volume of 5.6 tonnes in 2024.
RBI's gold purchases in H1 2024 stood at 37.1 tonnes, the highest since 2013 and representing more than three-fold growth year-on-year.
Moreover, the WGC notes, these purchases outpaced total acquisitions over the past two years. The RBI's gold reserves now stand at a record 840.7 tonnes, which is 8.7% of its total gold and foreign exchange reserves. Last year this figure reached 7.4%.
The Reserve Bank of India's gold purchases in the first six months of 2024 were the second largest in the world after Turkey and surpassed those of China.
Bullion purchases by central banks have been a key driver of this year's gold rush, leading to record price increases in May. Many countries still plan to buy gold next year, spurred by heightened geopolitical and financial risks that make owning the metal more attractive, according to the WGC. About 20 countries planned to increase their stockpiles, according to the survey, which did not reveal which countries were looking to buy.
The Reserve Bank of India has also moved 100 tonnes of its gold from Britain back to its domestic vaults, the Times of India reported in May.
Hélène Tarin, Editor-in-Chief of the Asian Bureau, Rough&Polished
