The Reserve Bank of India (RBI) has acquired an additional 10 tonnes of gold for its foreign exchange reserves, continuing its strategy of diversifying away from US Dollars. The central bank's total gold holdings now stand at a record high, placing it among the top gold-holding central banks in the world.
With global inflation concerns and currency fluctuations, other central banks in Asia and Europe are also aggressively stocking up on bullion. This central bank activity establishes a strong support level for gold prices globally, ensuring that a sharp drop in values is highly unlikely in the short term.