The Reserve Bank of India has made a substantial addition to its gold reserves by acquiring 57.5 tonnes in FY25, marking the second largest increase since 2017. This move comes at a time of global financial uncertainty and a surge in gold prices, reflecting a broader trend of central banks around the world increasing their gold holdings. The decision to boost gold reserves can be seen as a strategic move to diversify assets and hedge against market volatility. Gold has long been considered a safe-haven asset, especially during times of economic turbulence. The RBI’s move is likely to have a positive impact on India’s overall economic stability and could potentially strengthen the country’s position in the global market. As central banks continue to navigate the challenges posed by the current economic landscape, the significance of gold reserves as a reliable asset is becoming increasingly apparent. This increase in gold reserves by the RBI underscores the importance of gold as a valuable component of a diversified portfolio. With the global economic outlook remaining uncertain, the RBI’s decision to bolster its gold reserves is a strategic move that could offer stability and security in the face of market fluctuations.