Mumbai, Oct 29 (IANS) India’s gold reserves are increasingly being stored within the country as the Reserve Bank of India (RBI) continues to shift its holdings back home.

The move comes at a time when nations across the world are using financial sanctions and asset freezes as tools of geopolitical pressure.

According to official data, the RBI brought around 64 tonnes of gold to India during the first six months of the current financial year.

As of September-end, India’s total gold holdings stood at 880.8 tonnes, out of which 575.8 tonnes are now kept in domestic vaults.

The remaining 290.3 tonnes are held with the Bank of England and the Bank for International Settlements (BIS).

Additionally, 14 tonnes are part of gold deposit arrangements, as per the official data.

Since March 2023, the RBI has brought back 274 tonnes of gold from overseas locations.

This large-scale repatriation began after the Russia-Ukraine conflict and the Taliban takeover of Afghanistan, when G7 nations froze the foreign currency reserves of both countries.

The RBI’s decision to keep a larger share of its gold at home reflects growing concerns over the safety of overseas reserves amid rising global tensions.

Meanwhile, gold prices in India rose on Wednesday, tracking gains in international bullion markets ahead of the US Federal Reserve’s interest rate decision.

On the Multi Commodity Exchange (MCX), gold opened nearly flat at Rs 1,19,647 per 10 grams, compared to its previous close of Rs 1,19,646.

Later, it rose by Rs 401 or 0.34 per cent, trading at Rs 1,20,047 per 10 grams during early trade.

Silver prices also gained, opening at Rs 1,44,761 per kg and rising Rs 989 or 0.69 per cent to Rs 1,45,331 per kg.

In the global market, spot gold edged up 0.2 per cent to $3,957.42 per ounce, after touching its lowest level since October 7 on Tuesday.

However, easing US-China trade tensions limited gains, even as investors awaited an expected US Fed rate cut.

So far this year, gold prices have surged nearly 52 per cent, hitting an all-time high of $4,381.21 per ounce on October 20.

The rally has been driven by global uncertainties, expectations of rate cuts, and continued buying by central banks, including the RBI.

–IANS

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