Context:
The World Gold Council’s 2026 Central Bank Gold Reserves Survey says central banks worldwide are likely to accumulate more gold over the next one year. The trend is driven by geopolitical and economic uncertainty, while India’s RBI has also expanded its gold reserves between FY24 and FY25.
Explanation:
- World Gold Council (WGC) is a market development organisation for the gold industry; its Central Bank Gold Reserves Survey tracks central banks’ views on gold holdings. The World Gold Council (WGC) is headquartered in London, United Kingdom.
- India is not a member nation, as the WGC is a non-profit trade association and market development organization whose members are gold mining companies, rather than countries.
- The 2026 survey says central banks remain very positive on gold, seeing it as a growing part of reserve portfolios.
- Central banks have accumulated an average of 1,000 tonnes of gold annually over the past four years, much higher than the 500-tonne average of the preceding decade.
- Gold buying has increased due to geopolitical tensions, US dollar volatility, Fed rate expectations, and sustained central bank demand.
- In India, gold prices rose about 40% in 12 months, mainly due to central bank buying and rupee depreciation against the U.S. dollar.
- RBI’s gold reserves rose from 822.1 tonnes in FY24 to 879.58 tonnes by end-FY25, and marginally to 880.52 tonnes in FY26.
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