New Delhi: The Reserve Bank of India added 5 tons of Gold to its reserves during March. The gold reserves of the central banks worldwide reported a net increase in their gold reserves.

According to data from the World Gold Council, the total net buying of gold amounted to 16 tons during the month. The demand for gold remained robust, with monthly gross purchases staying steady at 40 tons. However, this was partly offset by gross sales of 25 tons.

In India RBI’s gold holdings rose to a record high of 822.1 tons by the start of April representing an 18.5 tons net acquisition since the beginning of the year. The central bank’s net gold buying in 2024 has already surpassed its net purchases in 2023 (16.2t). As of early April, gold’s share of total reserves has risen to 8.4% from 7.7% at the end of 2023.

Central banks worldwide took the lead in transactions involving gold during March, with several emerging markets actively participating in buying.

The Central Bank of Turkey emerged as the largest buyer, adding a substantial 14 tons of gold to its reserves. Following closely behind was the Reserve Bank of India, which increased its gold holdings by 5 tons. Similarly, the People’s Bank of China also added 5 tons of gold to its reserves.

Other notable buyers included Kazakhstan and Singapore, each adding 4 tons of gold to their holdings. Russia also contributed to the buying spree by increasing its gold reserves by 3 tons.

The significant increase in gold purchases by central banks reflects continued confidence in the precious metal as a store of value and a hedge against economic uncertainties. Gold has long been considered a safe haven asset, particularly during times of market volatility and inflationary pressures.

Global gold demand was up 3 per cent year-on-year at 1,238 tonnes in the first quarter of 2024, marking the strongest first quarter since 2016, according to the World Gold Council’s Gold Demand Trends report.

(With Agency Inputs)