The forex reserves rose $1.05 billion to reach $630.607 billion for the week ended January 31, according to the Reserve Bank of India (RBI) data. Meanwhile, gold reserves went up by $1.242 billion to $70.893 billion during the week
Global gold demand remained largely flat in 2024, registering a marginal 1 per cent growth from the previous year to 4,974 tonnes, mainly due to a decline in jewellery demand following high prices, softer economic growth and heightened global uncertainties, says World Gold Council
The strategy of holding gold is primarily aimed at hedging against inflation and reducing foreign currency risks, especially in times of uncertainty triggered by geopolitical tensions
Apart from reducing the import duty on gold, the government also proposed to authorise the Securities and Exchange Board of India (SEBI) as regulator for domestic gold spot exchanges.
