The Reserve Bank of India (RBI) has significantly bolstered its gold reserves, adding $5.6 billion during the April-June quarter, marking a strategic move amidst global economic uncertainties.

Data released by the RBI indicates that the central bank acquired approximately nine tonnes of gold between the end of March and May. During this period, the value of gold per tonne surged from $63.44 million to $68 million by the end of May, attributed to a robust global demand for the precious metal.

The surge in gold purchases contributed to a substantial increase in the RBI's reserves, with the value of gold reserves alone rising by $3.8 billion. Overall, India's foreign currency reserves, as of June 28, now stand at an impressive $652 billion.

RBI Governor Shaktikanta Das, addressing the media post-policy conference on April 5, highlighted the central bank's strategic approach towards gold accumulation. "We are building up gold reserves, and all decisions are made after thorough assessment," he affirmed, emphasizing the RBI's objective to diversify its foreign currency assets and mitigate inflation and foreign exchange risks.

The RBI's proactive stance in gold accumulation aligns with global trends observed since the onset of the Russia-Ukraine conflict in early 2022. Central banks worldwide, including India's, have intensified their gold acquisitions, viewed as a safe haven amidst geopolitical uncertainties.

Furthermore, the RBI has been gradually repatriating physical gold acquired overseas back to India, potentially as a precautionary measure amid escalating global tensions.

"The recent quarter reaffirms central banks' steadfast commitment to gold as a strategic asset," noted a recent report by the World Gold Council, underscoring the continuity in global gold accumulation strategies despite market volatilities.

The RBI's strategy of enhancing gold reserves dates back to December 2017 but has gained momentum in recent years, particularly post-COVID, reflecting a prudent approach in reserve management amid evolving global economic dynamics.