After purchases for 3 months, RBI pauses gold buying in January

After purchases for 3 months, RBI pauses gold buying in January

In 2019, the RBI bought 34.5 tn gold, compared with 42.3 tn in 2018. Its gold reserves stand at 635 tn, the 10th largest in the world.

AgenciesUpdated: Saturday, April 04, 2020, 08:06 AM IST
article-image
RBI | File

NEW DELHI: After adding gold to its reserves for three straight months, the Reserve Bank of India paused the purchase of the yellow metal in January, the World Gold Council has said, citing International Monetary Fund's International Financial Statistics data. Gold prices surged to a near seven-year high of $1,615.70 an ounce in January in international markets.

In 2019, the RBI bought 34.5 tn gold, compared with 42.3 tn in 2018. Its gold reserves stand at 635 tn, the 10th largest in the world. As a percentage of the RBI's reserves, gold holding fell to 6.9% in January from 7.0% in December.

Gold is considered a haven asset, especially during turbulence in global financial markets. Concern over the outlook on global economic growth has grown in recent months, leading the RBI to turn to gold as an alternative asset.

RBI began buying gold in December 2017 after a gap of eight years. In its annual report for 2017-18 (Jul-Jun), the RBI said it continued to look for opportunities to diversify India's foreign currency assets.

RECENT STORIES

Act Fast: H-1B Visa Registration For Fiscal 2025 Closes March 22 For Indian IT Professionals

Act Fast: H-1B Visa Registration For Fiscal 2025 Closes March 22 For Indian IT Professionals

Sun Pharma Gets Regulatory Nod In Australia For Acne Treatment Cream

Sun Pharma Gets Regulatory Nod In Australia For Acne Treatment Cream

Japan's Central Bank Ends Negative Interest Rate After Nearly 2 Decades

Japan's Central Bank Ends Negative Interest Rate After Nearly 2 Decades

Stock Market Opening March 19: Indices In Red; Sensex At 72,440.58 & Nifty At 21,956.60, ITC Up,...

Stock Market Opening March 19: Indices In Red; Sensex At 72,440.58 & Nifty At 21,956.60, ITC Up,...

Axis Bank Pledges ₹100 Cr To National Cancer Grid

Axis Bank Pledges ₹100 Cr To National Cancer Grid