Highlights
RBI gold buying hits 8-year low
In 2025, RBI purchased just 4.02 tonnes, down from 72.6 tonnes in 2024 (a fall of 94% YoY)
Total RBI gold reserves at record: 880.2 tonnes, despite a sharp slowdown in fresh buying
Gold share in forex reserves at an all-time high: Jumped from 10% to 16% in one year
Five-year shift: RBI’s gold exposure rose from 5.87% (March 2021) to 16% in 2025
Gold value in reserves: Over $100 billion as of November 2025
The Reserve Bank of India’s (RBI) 2025 gold purchases fell to their lowest level in eight years. RBI bought 4.02 tonnes of gold in total in 2025, compared to 72.6 tonnes in 2024, according to the World Gold Council’s latest report. Compared to the previous year, the RBI made almost 94% fewer gold purchases in 2025.
How much gold does the RBI hold?
Despite this slowdown, the RBI’s total gold holdings stand at a record 880.2 tonnes. At the end of 2024, it was 876.18 tonnes.
The share of gold in the RBI’s foreign exchange reserves also stands at a record high. As of November 2025, the RBI’s gold-based foreign exchange reserves stood at over $100 billion.
The substantial accumulation of gold in 2024, combined with a sharp rise in gold prices in 2025, has materially increased the share of gold in the RBI’s foreign exchange reserves – up from around 10% to 16% within a year.
The RBI may have paused gold purchases due to the rising proportion of total gold reserves relative to total foreign exchange reserves. WGC, in its report, says, “We believe these points to a measured approach in reserve management, with higher gold prices and the increased share of gold in foreign exchange reserves likely influencing the pace of additional purchases.”
RBI’s data show that the exposure to gold in India’s forex reserves (in dollars) was 5.87% in March 2021. In just five years, the RBI’s allocation to gold assets has increased from almost 6% to 16%.
Not all gold deposits are held within the country, as a large portion of the RBI’s gold reserves is stored in vaults abroad.
“As of March 2025, the Reserve Bank held 879.59 metric tonnes of gold, of which 511.99 metric tonnes were held domestically. While 348.62 metric tonnes of gold were kept in safe custody with the Bank of England and the Bank for International Settlements (BIS), 18.98 metric tonnes were held in the form of gold deposits,” reads the RBI’s Half Yearly Report on Management of Foreign Exchange Reserves published on May 5.
Gold with Central Banks
Central banks now officially hold 32,140 tonnes of gold as of December 2025. The central bank’s buying spree started in 2022. According to the World Gold Council, in 2022, global central banks purchased 1,082 tonnes, 1,037 tonnes in 2023 and a record 1,180 tonnes of gold in 2024. In 2025, central banks are expected to have breached the 1,000 tonnes mark again.
With 20%, gold is now the second-most important foreign exchange reserve asset (after the dollar’s share of 46%) held by central banks, surpassing even the euro with 16%. Also, global central banks are now holding more gold than US Treasuries. For the first time since 1996, central banks’ foreign exchange holdings hold more gold than US Treasuries.
Central banks’ purchases started showing a falling trend in the first 2 quarters of 2025, when 244 tonnes of gold were purchased in Q1, and 166 tonnes in Q2.
Gold prices have risen approximately 175% since 2022, primarily driven by substantial central bank purchases amid global uncertainties. In 2025, gold experienced a surge of over 65% as investors continued to seek safe-haven investments.