Kolkata:The Reserve Bank of India added 4.7 tonnes of gold in February, taking its gold reserves to an all-time high of 817 tonnes. Retail investors, too, have increased their exposure to the yellow metal through Exchange Traded Funds (ETFs). Indian Gold ETFs saw inflows of US$93.3mn in February, the strongest monthly inflow for six months, according to the World Gold Council (WGC).
The WGC expects that 2024 will be another solid year of Central Bank gold demand. Central Banks, particularly those in emerging markets, have shown since 2010 that they have a long-term strategy towards gold accumulation. As for why Central Banks are continuing to add gold to their reserves, WGC’s Central Bank gold survey remains instructive. Last year Central Banks across the world placed great emphasis on gold’s value in crisis response, diversification attributes and store-of-value credentials. A few months into 2024 the world seems no less uncertain meaning those reasons for owning gold are as relevant as ever.