India’s gold reserves cross record $100 Bn for first time in history

India's gold reserves hit a record high, crossing the $100 billion mark for the first time in history, the latest foreign exchange reserves data of the Reserve Bank of India (RBI) showed on Friday.

India's gold reserves

The rise in India's gold reserves came amid a global surge in gold prices despite the central bank slowing its purchases rapidly this year.

In the international market, spot gold prices rose to $4,300 per ounce for the first time on Thursday, gaining 7.6% this week amid renewed US-China trade tensions and expectations of a US rate cut.

Foreign exchange reserves are assets gathered by a nation’s central bank or monetary authority, primarily in reserve currencies such as the US dollar, with smaller portions in the Euro, Japanese Yen, and Pound Sterling.

The RBI often mediates by managing liquidity, including selling dollars, to prevent a steep depreciation of the rupee. The RBI strategically purchases dollars when the Rupee is strong and sells when it weakens.

The gold holdings of India climbed by $3.595 billion in the week through October 10, reaching $102.365 billion, as per the latest RBI data.

In contrast, the overall foreign exchange reserves of the country fell $2.18 billion to $697.784 billion.

India’s gold reserves are the highest since 1996-97, traders said, with the share of gold in India's total reserves climbing to 14.7 per cent.

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Why did India's gold reserves cross the record $100 billion mark?

The valuation surge could be primarily due to an extraordinary rally in gold prices, which have jumped 65% so far in 2025.

“The share of gold in India's foreign exchange reserves has increased significantly, largely driven by valuation gains from the rising gold price", said Kavita Chacko, research head for India at the World Gold Council.

The rise in gold reserves has been fuelled by macroeconomic uncertainties and changing global sentiment towards reserve diversification.

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