RBI gold reserves cross $100 billion mark for first time amid price rally, highest share in forex reserves in 20 years

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

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

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

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

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

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

Over the past decade, India saw its gold share in foreign exchange reserves almost double from less than 7 per cent to nearly 15 per cent. This reflects both steady central bank accumulation and a surge in global bullion prices.

The ramping up of the gold share has led to the crossing of the $100 billion milestone, despite the RBI markedly slowed down its gold purchases this year.

For the first nine month of 2025, the central bank has purchased gold only in four of them, according to data from the World Gold Council. That compares to a near-monthly additions in 2024,

Cumulative buying from January to September stood at just 4 tons, markedly lower than 50 tons in the same period a year earlier.

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.

Gold prices have rallied rapidly this year, surging about 65 per cent since the beginning of 2025, powered by a potent mix of macroeconomic, institutional and psychological drivers.

Heightened geopolitical risks, de-dollarisation, and pressures of sanctions have prompted global central banks to accumulate gold in order to diversify their reserves away from the US dollar.

India is the world's second-largest consumer of gold and relies on imports to meet demand. Buying gold is deeply rooted in Indian culture, driven by tradition and its role as both an investment and a status symbol.

Forex reserves down by $2 billion

India's forex reserves dropped by $2.176 billion to $697.784 billion during the week ended October 10, according to RBI data on Friday.

In the previous reporting week, the overall kitty had decreased by $276 million to $699.96 billion.

For the week ended October 10, foreign currency assets, a major component of the reserves, decreased by $5.605 billion to $572.103 billion, the data showed.

Expressed in dollar terms, the foreign currency assets include the effect of appreciation or depreciation of non-US units like the euro, pound and yen held in the foreign exchange reserves.

(With agency inputs)