The Reserve Bank of India (RBI) has successfully relocated 102 tonnes of gold from the vaults of the Bank of England to secure facilities in India. This significant transfer reflects the central bank's strategy to keep its valuable assets closer to home.

Since September 2022, India has repatriated a total of 214 tonnes of gold, underscoring the RBI’s commitment to maintaining a greater share of its wealth domestically. With this latest transfer, the RBI now holds a total of 855 tonnes in reserves, of which 510.5 tonnes are stored within the country. This adjustment comes in response to increasing geopolitical risks and aligns with the government's objectives of enhancing national security by managing assets locally.

The decision to bring back a portion of India’s gold reserves is influenced by rising international tensions and economic uncertainties. Government sources indicate that keeping these reserves in the country adds an extra layer of security for the nation’s wealth.

The logistics involved in transporting this gold were handled with utmost secrecy and stringent security protocols, employing specialized aircraft and secure measures. This careful approach demonstrates the government’s dedication to protecting sensitive information and assets amid a complex international landscape.

This is not the first instance of India repatriating substantial amounts of gold. Earlier this year, in May, the country transferred 100 tonnes from the Bank of England to domestic vaults, marking one of the largest gold relocations since the 1990s. Unlike the past, when gold was pledged as collateral during a financial crisis, this recent move is part of a proactive strategy to secure national wealth.

Currently, 324 tonnes of India’s gold reserves remain under the custodianship of the Bank of England and the Bank for International Settlements in the UK. The Bank of England has served as a reliable custodian for central banks worldwide since 1697, providing a secure “bullion warehouse.” While London’s bullion market offers liquidity benefits, it appears that India is not planning to transfer additional gold from the UK in the near future.

Gold now constitutes 9.3% of India’s total foreign reserves, an increase from 8.1% in March. This rise has been bolstered by a surge in global gold prices, which currently stand at approximately Rs 78,745 per 10 grams in Mumbai. Analysts anticipate that prices may climb to Rs 85,000 per 10 grams over the next year, fueled by heightened investor interest in gold during times of economic uncertainty and conflict, particularly in the Middle East.

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