Chennai: The Reserve Bank of India continued adding gold to its reserves in November. It added 8 tonnes of gold, lifting the total gold reserves to 876 tonnes.
In the eleven months of 2024, RBI has bought a total of 73 tonnes. In 2024, RBI was the third largest gold-buying central bank after Poland and Turkey.
In the month of November, Uzbekistan bought 9 tonnes, which was more gold than India, pushing RBI to the third slot. In total, the net purchase of central banks stood at 53 tonnes in November.
This extends the broader trend observed throughout this year where central banks – mostly those from emerging markets – have remained keen buyers of gold, driven by the need for a stable and secure asset amid global economic uncertainties.
Some of the largest net sellers of gold year-to-date are Philippines, Thailand and Singapore. With only December data to be revealed, central banks are expected to be net purchasers of gold for the 15th consecutive year.
In 2023, RBI had bought just 16 tonnes and the 2024 purchases are the highest since 2009 when India had bought 200 tonnes from the International Monetary Fund.
According to Ajay Kedia, MD, Kedia Commodities, the central banks are building gold reserves as a response to the geo-political tensions around. “Further, the new regime in the US is also likely to add to the uncertainties,” he said.
RBI also has been transporting part of its gold stored in overseas vaults.
