RBI tanks up on 18.5 tonnes of gold in Jan-Mar, exceeding 2023 tally

Global central banks continued to bolster their gold reserves in March, with significant purchases led by emerging market banks, according to data from the World Gold Council (WGC). Central banks collectively added 16 tonnes of gold to their reserves during the month, matching the additions seen in February.

The Reserve Bank (RBI) notably contributed to this trend, purchasing 18.5 tonnes of gold in the first quarter of 2024, propelling its reserves to a record high. By the end of March, India's gold reserves stood at 822.1 tonnes, comprising 9% of its total reserves and ranking it as the 10th-largest holder of official gold globally.

The RBI's gold acquisitions in the first quarter already exceeded its total purchases of 16.2 tonnes throughout 2023. So far this year, only Turkey and China have acquired more gold than India.

The World Gold Council highlighted the continuing buying strength among emerging market central banks noting that March's gold transactions were spearheaded by central banks that have been consistently active in the market.

Notable buyers

Among the notable buyers, the People's Bank of China added 5 tonnes of gold in March, marking its 17th consecutive month of purchases. China's gold reserves reached 2,262.4 tonnes by the end of March.

Other significant purchasers during the month included the Central Bank of Turkey with 14 tonnes, the National Bank of Kazakhstan and the Monetary Authority of Singapore each with 4 tonnes, the Central Bank of Russia with 3 tonnes, the Czech National Bank with 1 tonne, and the National Bank of the Kyrgyz Republic also with 1 tonne.

Conversely, the Bank of Thailand and the Central Bank of Jordan were notable sellers in March, reducing their reserves by 10 tonnes and 4 tonnes, respectively.

As of the end of February, global central banks collectively held 35,938.9 tonnes of gold reserves, underscoring the ongoing importance of gold as a reserve asset for central banks worldwide. The steady accumulation of gold reserves by emerging market central banks reflects continued diversification strategies amid evolving global economic conditions and geopolitical uncertainties.