India’s gold reserves surpass $100 bn, now 14.7% of total forex holdings

The value of gold in the Reserve Bank of India’s (RBI) foreign exchange reserves has crossed the $100 billion-mark for the first time, reaching $102 billion in the week ending October 10. According to RBI data, gold holdings rose by $3.6 billion during the week, even as total foreign exchange reserves dipped by $2 billion to $697.7 billion.

Gold now accounts for 14.7% of India’s total reserves, the highest level since 1996–97. This growth reflects both valuation gains from rising prices and steady accumulation over the past decade. Over this period, the share of gold in India’s reserves has nearly doubled, climbing from around 7% to close to 15%.

The rise in gold reserves comes as global prices surged past the all-time high of $4,000 per ounce last week, according to the World Gold Council. Foreign currency assets in the RBI’s reserves declined by $5.6 billion to $572 billion during the same period.

India’s total reserves remain close to the record high of $702 billion seen in mid-September, though they have eased slightly since.

Domestically, gold prices reached a record ₹1,33,175 per 10 g (24K) on Dhanteras, with premiums surging to ₹782 per 10 g—the steepest in over a decade. Globally, spot gold breached $4,300 per ounce, logging its biggest weekly gain in nearly 20 years.

“From a financial perspective, gold is riding on multiple tailwinds: a weak dollar, rate-cut expectations in the U.S., and aggressive central bank accumulation,” said Inderbir Singh Jolly, CEO, PL Wealth Management.

Analysts at Goldman Sachs liken the current rally to the 1970s spike—driven by real demand rather than speculation. India’s “investment share” of gold demand is rising, with buyers gravitating toward coins and bars over expensive jewellery as fabrication costs bite. However, record highs come with trade-offs: jewellery demand is expected to weaken this festive season, Jolly noted.

NS Ramaswamy, Head of Commodities & CRM, Ventura, said the rally began in March 2025 at $3,000 per ounce, reaching $4,300 within seven months. “The explosive gains were noted at $4,000, $4,100, and $4,200; gold seems to be on a global tour finding new destinations. Last Dhanteras (October 29, 2024), prices were ₹78,840 per 10 g or $2,769 per ounce, yielding returns of 63% and 53% respectively, compared to current levels of ₹1,28,200 per 10 g and $4,254 per ounce,” he added.

With delays in U.S. economic data (employment and inflation) due to the government shutdown, focus has shifted to Fed Chair Powell, who indicated that rising labour market risks may justify another rate cut, Ramaswamy said.