India’s gold reserves have crossed the $100 billion mark for the first time, reaching a historic high of $102.36 billion, according to the latest data from the Reserve Bank of India (RBI). The milestone was achieved even as the central bank scaled back its pace of gold purchases this year, helped largely by a sharp global rally in bullion prices.
As per RBI’s weekly statistics released on Friday, gold holdings rose by $3.6 billion in the week ending October 10, while the country’s overall foreign exchange reserves slipped by $2.18 billion to $697.78 billion.
Traders noted that India’s gold reserves are now at their highest level since 1996–97, with the share of gold in total reserves climbing to 14.7%. A decade ago, this figure was under 7%, underscoring the twin impact of steady central bank accumulation and a sustained rise in global gold prices.
Despite the recent slowdown in RBI purchases, valuation gains have driven the surge. The World Gold Council (WGC) reported that the RBI bought gold in only four of the first nine months of 2025, acquiring a modest four tonnes, compared with 50 tonnes during the same period last year.
Gold prices have surged nearly 65% since the start of 2025, fuelled by a mix of geopolitical tensions, economic uncertainty, and a wave of de-dollarisation among global central banks seeking to diversify away from the US dollar.
Analysts attribute this rally to multiple forces — from institutional hedging to sanctions pressure — which have made gold an increasingly attractive reserve asset. Central banks worldwide have been increasing their gold holdings to reduce reliance on dollar-based assets.
For India, the move holds deeper significance. As the world’s second-largest consumer of gold, the country’s relationship with the metal runs beyond economics — gold remains both a cultural investment and a symbol of prosperity.
While gold reserves climbed, India’s overall forex reserves recorded a decline. The foreign currency assets, which form the largest component of total reserves, fell by $5.6 billion to $572.10 billion during the week ending October 10.
The RBI explained that fluctuations in the valuation of major non-dollar currencies — such as the euro, pound, and yen — also impact the dollar-denominated value of India’s reserves.
In the previous week, India’s total reserves had stood at $699.96 billion, marking a mild decline of $276 million.
India’s crossing of the $100 billion threshold in gold reserves marks a symbolic moment in the country’s financial history. Even with the RBI’s restrained pace of buying, the steady appreciation of gold prices and long-term diversification strategy have strengthened the metal’s role within India’s reserve portfolio.
