India’s gold reserves grew by $664 million to $130.68 billion for the week ending March 13, as per data from the Reserve Bank of India. However, the country’s total foreign exchange reserves decreased by $7.05 billion to $709.76 billion during the same period. This decline follows a steeper drop in the previous week, when reserves fell by $11.68 billion to $716.81 billion from $728.49 billion.
The decrease in reserves is mainly attributed to the central bank’s involvement in the currency market, where it sold dollars to bolster the rupee amidst pressure from escalating global oil prices and geopolitical tensions related to the Iran conflict. Foreign currency assets, the largest component of reserves, fell by $7.678 billion to $555.568 billion in the reported week.
These assets also reflect the impact of fluctuations in major global currencies like the euro, pound, and yen against the US dollar. Meanwhile, on the last trading day of the week, precious metals experienced fluctuations amid rising tensions in the Middle East. According to data from the India Bullion and Jewellers Association (IBJA), gold of 999 purity was priced at Rs 1,47,218 per 10 grams, showing a decrease of Rs 671 from the previous day.
On a weekly basis, gold prices dropped by over Rs 11,100, while silver prices fell by more than Rs 28,100. Last Friday, 999-purity gold was priced at Rs 1,58,399 per 10 grams, and 999-purity silver was at Rs 2,60,488 per kilogram. Moreover, gold and silver prices fluctuated notably on the Multi-Commodity Exchange (MCX). By 5:58 p.m., gold for April delivery traded at Rs 1,46,824 per 10 grams, up 1.29%, while silver for May delivery was at Rs 2,34,112 per kg, up 1.15%.
