RBI raises gold holdings by 9%

Reserve Bank of India increased its gold holdings by 9.2% in the year ended June, its biggest in nearly a decade amid trade war tensions and global slowdown.

The central bank bought 51.93 tonne of gold last year, raising total holdings to 618.16 tonne, according to the bank’s annual report released on Thursday. 

It is most since the 200 tonne it bought from International Monetary Fund in 2009-10.

The global gold prices have surged 20% this year to hit the highest level since 2013 as investors are seeking safe haven assets amid a raging trade war between the US and China and a global slowdown. Central bank purchases have been another key support for prices in the past year.

Central banks have added 374.1 tonne in the first six months of 2019, pushing the demand for the precious metal to a three-year high, according to the World Gold Council.

According to Australia & New Zealand Banking Group Ltd, the gold-buying by central banks, including China, is likely to persist in the coming years.