The Reserve Bank of India (RBI) has made a substantial move by increasing its gold reserves by 57.5 tonnes in FY25. This decision comes in the wake of global financial instability and the escalating prices of gold. The acquisition represents the second largest increase in gold reserves by the RBI since 2017. This move by the central bank is in line with the global trend where central banks are bolstering their gold holdings. Gold is considered a safe-haven asset, especially during times of economic uncertainty. The RBI’s decision to increase its gold reserves could be seen as a strategic move to diversify its assets and safeguard against market volatility. This move also reflects India’s confidence in the long-term value of gold as a stable investment. With the global economic landscape remaining uncertain, central banks around the world are turning to gold as a reliable asset. The RBI’s decision to increase its gold reserves not only aligns with global trends but also demonstrates its proactive approach in managing risks and ensuring financial stability.