The Indian economy has, in recent times been dealt with several blows. While the economy had been slowing down for some time, the novel coronavirus outbreak, has perhaps made the situation worse, with businesses across the country having been closed for over a month. Against this backdrop, it is reassuring to realise that that India has the tenth highest gold holdings in the world, according to data recently released by the World Official Gold Holdings.
As per the data provided, the United States leads the list with 8,133.5 tonnes, while Germany comes second with 3,364.2 tonnes. The International Monetary Fund (IMF) ranks third with 2,814.0 tonnes.
India ranks tenth, right below Japan, with 641.8 tonnes. According to the data shared by the World Official Gold Holdings, the percentage share held in gold of total foreign reserves, as calculated by the World Gold Council stands at 6.8%.
The value of gold holdings incidentally is calculated using the end of month LBMA gold price published daily by ICE Benchmark Administration.
In other related news, a Reuters report from Monday quoted a government source to say that India's gold imports have plunged 99.9% year-on-year in April. This is the lowest in nearly three decades, and comes amid the pan-India lockdown that went into effect at the end of March. This comes against the backdrop of a ban on air travel and the fact that jewellery shops have remained shut.
Gold futures on Tuesday fell 0.88 per cent to Rs 45,405 per 10 gram as participants offloaded their holdings following weak trend overseas. On the Multi Commodity Exchange, gold prices for June delivery fell by Rs 402, or 0.88 per cent, to Rs 45,405 per 10 gram in a business turnover of 13,574 lots. The yellow metal for August delivery declined by Rs 378, or 0.82 per cent, to Rs 45,640 per 10 gram in 2,233 lots.