New Delhi: India just hit a glittering milestone, the Reserve Bank of India’s gold reserves have crossed the $100 billion mark for the first time ever. Call it financial muscle or festive timing, but the RBI’s vault is now heavier than it has ever been.
A Golden First for the RBI
The Reserve Bank of India (RBI) now officially sits on over $102.36 billion worth of gold, according to the latest data for the week ending October 10, 2025. That’s a $3.59 billion jump in just one week. Meanwhile, the country’s total foreign exchange reserves stand at $697.78 billion.
The share of gold in India’s reserves has climbed to 14.7%, the highest since 1996–97, as per data cited by Reuters. To put it bluntly, India’s vault is looking shinier than ever. Ten years ago, gold was just 7% of our total reserves. Now it’s nearly double that.
This isn’t just about hoarding gold; it’s about strategy. The RBI has been gradually bulking up on bullion, even as global prices rocket to record highs above $4,300 an ounce.
Slow Buying, Massive Value Jump
Here’s the twist: the RBI actually bought less gold this year. According to the World Gold Council, the central bank picked up gold in only four out of the first nine months of 2025, adding just 4 tonnes compared to 50 tonnes during the same period last year.
So, what’s behind the $100 billion headline?
Pure price action.
Global gold prices have gone through the roof thanks to renewed US-China trade tensions, a US government shutdown dragging into its third week, and expectations of Federal Reserve rate cuts. Investors are fleeing risk and running straight toward the one metal that doesn’t lie, gold.
Forex Kitty Still King
While gold shines bright, the RBI’s overall forex reserves actually dipped by $2.17 billion that week. The foreign currency assets (FCAs), which form the largest chunk, fell by $5.6 billion to $572.1 billion.
The Special Drawing Rights (SDRs) also slipped by $130 million, and India’s IMF reserve position nudged lower by $36 million.
Despite the drop, India’s total forex pile remains among the world’s top five, giving the RBI firepower to defend the rupee or manage liquidity when needed.
Remember: the RBI doesn’t hoard dollars for fun. It strategically buys when the rupee is strong and sells when it’s under pressure, keeping currency markets stable, at least as stable as global chaos allows.
Dhanteras Timing or Market Genius?
Let’s be honest: hitting the $100B mark right before Dhanteras, India’s favorite gold-buying festival, is poetic timing.
On October 17, a day before Dhanteras, 24-carat gold in India blew past ₹1.3 lakh per 10 grams in major cities, including Delhi, Mumbai, Bengaluru, Chennai, and Kolkata. Even 18-carat gold touched ₹1 lakh.
By Dhanteras day, prices cooled slightly, ₹1,27,320 per 10 grams on the Multi Commodity Exchange (MCX), but retail markets still quoted around ₹1.32 lakh.
That’s nearly 66% higher than last year’s Dhanteras, when gold was about ₹76,250 per 10 grams. This is one of the sharpest annual surges India has ever seen.
Global Chaos, Golden Opportunity
Behind the glitter is a messy global backdrop.
The US government shutdown has sidelined almost 1.6 million workers, delaying key economic data and shaking market confidence. Meanwhile, President Donald Trump has reignited his trade war playbook, threatening 100% tariffs on Chinese goods after Beijing expanded export controls on rare earth elements, critical for electronics and defence.
Add a weakening US dollar index and a cautious Federal Reserve leaning toward more rate cuts, and you’ve got the perfect recipe for gold’s meteoric rise.
According to the World Gold Council, global demand from central banks remains strong, with over 350 tonnes purchased year-to-date. Even ETFs are piling in, with inflows topping $75 billion so far in 2025.
India’s Festive Rush Meets Record Prices
Back home, Indians are doing what they always do best during Diwali season, buying gold, no matter the price.
Jewellers report strong Dhanteras footfall, though buying habits have shifted. Lightweight jewellery and coins are flying off shelves faster than traditional heavy sets. The average ticket size is smaller, but the sentiment is unshaken.
Thanks to GST reforms, 7th Pay Commission arrears, and easing inflation, household liquidity is high enough to absorb the shock. High-end boutiques and wedding buyers are still driving volume, while small jewellers face tighter margins.
From Rs 63 to ₹1.3 Lakh, India’s Six-Decade Gold Obsession
Gold isn’t just an asset in India, it’s identity, insurance, and emotion wrapped in yellow metal.
In the 1960s, 10 grams of 24-carat gold cost ₹63. By 2000, it was ₹4,400. In 2020, ₹48,651. Now, over ₹1.3 lakh.
The current rally, a $1,000 jump in just 207 days, is the fastest in history. For perspective, it took gold 15 years to climb from the previous $1,000. When something doubles that fast, it’s not luck. It’s leverage, and India seems to have mastered that play.
What’s Next for Gold and the RBI
Global banks are turning bullish. HSBC recently hiked its 2025 average gold price forecast to $3,455 per ounce, expecting prices could hit $5,000 by 2026.
Even if the RBI slows purchases, its existing stash now serves as a powerful hedge against global instability and dollar volatility. With forex reserves close to $700 billion, and gold at record value, India’s balance sheet looks more resilient than ever, and more golden than it’s been in modern history. This isn’t just about metal. It’s a statement. The RBI just reminded the world that India plays long-term, and it plays to win.
Also Read: Rupee Rises Against Dollar: India Shows Market Mastery
