RBI waiting for gold prices to fall? Central bank keeps gold reserves constant; decision likely due to forecasts on yellow metal
The Reserve Bank of India (RBI) has maintained its current gold reserves without additions so far in FY26, potentially linking its acquisition strategy to anticipated downward price movements in this safe-haven commodity.
Gold prices have risen 80% over five years due to global trade and political instability.
According to recent data, the RBI's gold holdings remain stable at 880 metric tonnes from end-March through end May this year.
This represents the most extended period without purchases in over a year. Previously, acquisitions were suspended during October-December 2023, with holdings remaining constant at 804 metric tonnes throughout that period, according to an ET report.
Why Is RBI Not Adding to India's Gold Reserves Right Now?
The central bank's current stance appears to be influenced by various market analyses. Price projections from Citi, a Fitch research division, Motilal Oswal Securities and ICICI Bank suggest a decline from $3,445 per troy ounce, citing potential reduction in global political tensions and anticipated interest rate reductions by the US Federal Reserve.
Gold Holdings in Foreign Exchange Reserves
Central bankers are increasingly favouring gold investments, according to a World Gold Council (WGC) survey conducted in mid-June.
by Taboola
by Taboola
Sponsored Links
Sponsored Links
Promoted Links
Promoted Links
You May Like
Giao dịch CFD với công nghệ và tốc độ tốt hơn
IC Markets
Đăng ký
Undo
The study, which included responses from approximately half of all central banks, indicated that 95% of participants anticipate global sovereign reserve managers will expand their gold holdings over the next 12 months, an increase from 81% in the previous year.
"Gold's performance during times of crisis, its use as an effective portfolio diversifier, and its role as a long-term store of value were the top three most relevant reasons for central banks to hold gold," the respondents to the WGC survey said according to the financial daily's report.
Also Read |
Gold a darling investment not just for Indian households! Why corporates are investing big in gold ETFs - explained
The WGC's 'Trends in Reserve Management 2024' survey highlighted that reserve managers consider geopolitical escalation as their primary concern. The increasing number of geopolitical conflicts has brought attention to the vulnerability of reserves to sanctions, which can restrict access to and utilisation of foreign assets. In this context, reserve managers consider gold as their most secure investment alternative.
"Reserve managers worldwide allocate their holdings into distinct categories, including a liquidity tranche for immediate requirements and an investment tranche aimed at generating enhanced returns," stated a research analysis in the central bank's most recent annual report. "Gold's property of being a safe-haven asset has led to significant gold purchases by central banks."
According to RBI's latest annual report, gold's proportion within net foreign assets rose to 12% at end-March 2025, compared with 8.3% at end-March 2024.
Stay informed with the latest
business
news, updates on
bank holidays
and
public holidays
.
AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Economic Times
12 minutes ago
- Economic Times
BPM companies tap growing demand from GCCs to expand
TIL Creatives Business process management (BPM) companies such as Genpact, WNS and Sutherland are seeing increasing opportunities in global capability centres (GCC) as a key customer segment, where they can help establish and scale up operations at these centres as well as drive their digital is assembling a dedicated team and planning to appoint a GCC leader for India for focused engagements with this segment. Sutherland has seen a 25-30% year-on-year increase in enquiries for digital transformation projects with GCCs. WNS has done more than 25 projects with GCCs so far and expects these collaborations to increase. BPMs have been pivoting from purely back-office cost-outsourcing firms to more technology and artificial intelligence (AI)-enabled transformation partners. This aligns closely with the evolving needs of GCCs as they seek greater operational efficiencies and innovation, experts said. Despite concerns around insourcing by GCCs eating away business for the IT/BPM industry, executives believe there is ample room for collaboration and are optimistic that the build-operate-transfer (BOT) and shared hybrid operating models that are picking up pace are 'win-win' and enable 'coexistence'.'Most enterprises adopt a hybrid model that leverages the strengths of both,' said Keshav Murugesh, group CEO, WNS. 'GCCs allow for a deeper cultural connect with the parent organisation, and companies like WNS bring deep domain expertise, innovative technology, ready talent, cost efficiency and shared investments in transformation tools.'The company is providing end-to-end services to GCCs ranging across the design of the future state operating models, consolidating operations into a single centre, talent acquisition, transition as a service, managed services and infrastructure set-up, he Vashisht, chief growth officer, Genpact, said the firm's investments in advanced technologies such as generative AI and agentic AI are the kind of capabilities GCCs are looking for as they evolve into innovation engines for global enterprises.'While we've worked with GCCs in the past, we're now bringing the full power of Genpact behind this opportunity, with a formal, programmatic approach, clear leadership and dedicated teams in the market,' Vashisht the past year, Genpact has made a strategic pivot toward 'service-as-agentic-solutions'. For GCCs, it seeks to support the entire lifecycle, from upfront strategy and consulting to advanced capabilities in agentic AI, data and process Anand, SVP & global head — digital business services, Sutherland, said that some GCCs are also exploring joint innovation and joint go-to-market collaborations leveraging the firm's digital & AI teams to serve their end-clients. Mid-market GCCs, which are relatively resource-constrained and less familiar with the Indian landscape, present a significant opportunity, as they seek to partner for turn-key set-ups tapping into the experience and expertise that firms like Sutherland bring, he said.'We have configured (our capabilities and services) in a way that we can execute not only turn-key programs but also flexibly bring consulting, legal, tax and infrastructure services during the set-up phase; transition, operations and program management services during the scaling phase; and our digital, analytics and AI enablement teams during the transformation phase," said pressure from rising labour costs, inflation and foreign exchange volatility is making traditional BPO models unsustainable, said Rajesh Ojha, partner and GIC/GCC market segment leader, PwC India. 'In response, BPM firms are shifting toward higher-value, GCC-aligned services like FP&A, analytics and digital ops—offering better margins and deeper client stickiness,' he now prefer models with lower operating costs amid high global interest rates, fuelling demand for assisted GCCs on vendor infrastructure, or 'GCC-as-a-service'. Further, Ojha said, regulatory developments—whether data laws or protectionist shifts–-are pushing enterprises toward compliant, captive GCCs, positioning BPMs as 'managed capability partners' who can enable secure, IP-protected set-ups. Elevate your knowledge and leadership skills at a cost cheaper than your daily tea. Did Jane Street manipulate Indian market or exploit its shallowness? Just before the Air India crash, did India avert another deadly mishap? How Balrampur Chini, EID Parry are stirring up gains amid melting sugar stocks Second only to L&T, but controversies may weaken this infra powerhouse's growth story Stock Radar: Poly Medicure stock looks attractive for short-term gains; still down 30% from highs Stock picks of the week: 5 stocks with consistent score improvement and return potential of more than 29% in 1 year Capital market stocks: Some corrections are opportunities, 5 stocks with potential downside to upside from -20% to +24% Skepticism & multibaggers: 15 stocks where element of skepticism is high, need is basic & now policy direction is right
Mint
13 minutes ago
- Mint
Yes Bank pauses CEO search pending RBI nod to Sumitomo deal
The board of Yes Bank Ltd has paused the search for a new chief executive till the banking regulator clears its ongoing stake sale to Japan's SMBC Group, two people aware of the development said. This came after some directors voiced concerns about shortlisting a new CEO at a time of ownership change. The Japanese lender announced in May that it will acquire a 20% stake in Yes Bank for ₹13,482 crore, in the largest cross-border investment in the Indian banking sector. SMBC is a wholly-owned subsidiary of Sumitomo Mitsui Financial Group, the second largest banking group in Japan with assets of $2 trillion at the end of December. 'The board had started the process and gone quite far with it before the deal, but some members of the board did not concur with it since the new investor would also like to be part of the decision," one of the two people cited above said on the condition of anonymity. The Yes Bank board had begun the hiring process even before the deal with Sumitomo Mitsui Banking Corp. was announced in May. The bank's current CEO Prashant Kumar was brought in to steady the ship as part of a central bank-backed revival plan in 2020. Kumar, whose term ends in October this year, recently got an extension to stay for six months more, or until a successor is appointed. According to the person cited above, the Reserve Bank of India (RBI) has also been kept informed, and the regulator too feels the search should resume once SMBC deal is cleared. The person said that therefore, RBI allowed a six-month extension to Kumar, instead of the usual one-three years that the regulator gives. 'The RBI is of the opinion that if and when it clears SMBC's bid for a stake in Yes Bank, the board should take the opinion of the new shareholder on this issue. It can then decide to send a set of names to the central bank," said the first person cited above. A spokesperson for Yes Bank said the bank has "no comments to offer". Emails sent to RBI and SMBC remained unanswered. A top-tier executive search firm tasked to find the new CEO has been asked to pause the search, two other industry officials said. 'The Japanese company wants to weigh in, and therefore, the hiring mandate has been put on hold. This is one of the reasons why the present CEO got an extension," said one of the executives, who did not want to be named. Another top executive from the search industry confirmed the development, but added that there is no clarity whether a new search mandate will be rolled out or the search firm tasked earlier will start work again once there is more clarity. The result could be a lengthy wait for a new CEO. Search firms often spend months to find a suitable CXO candidate. In the last couple of years, searches for suitable corner office candidates have taken longer than usual, with executives taking as long as a year to complete the process. Geo-political uncertainties, hesitation by candidates to start a new role, companies asking for multiple rounds of panel interviews so that no one person becomes the fall guy in case the hiring goes wrong, are some of the reasons for the long time taken. Meanwhile, SMBC is also looking to increase its holding in Yes Bank over time, even as its voting rights are expected to be capped at 26%. According to the first person, the bank has already applied to RBI, seeking approval for its 20% stake buy and is keen to take on more equity in the private sector at a later date. The deal has rekindled hopes of greater foreign participation in the domestic sector. Rating agency Fitch believes the deal could lead to a wave of foreign investment in Indian lenders, if RBI approves the deal and sets a precedent. It said in a statement on 27 May that India's foreign investment norms cap voting rights for investors in banks at 26% and investments by financial institutions in Indian banks at 15%, which have deterred such stake sales. Foreign banks have a 3% share in India's loans, as compared to 52.3% and 40% commanded by public sector and private sector banks, respectively, at end-March, showed data from RBI. Although RBI had not officially indicated its stance on greater access to foreign investors, news reports suggest that the regulator is examining such a proposal. Citing a 'source familiar with the central bank's thinking", Reuters reported on 3 June that RBI would be 'more open to letting regulated financial institutions own bigger stakes, with approvals on a case-by-case basis, and to certain rule changes that could address disincentives for foreign acquisitions."
Time of India
21 minutes ago
- Time of India
Micromanagers to ghost bosses: Ghazal Alagh breaks down what makes employees leave
Image credits: LinkedIn/Ghazal Alagh Ghazal Alagh, the 36-year-old co-founder of the beauty and skincare company Mamaearth, recently took to LinkedIn to share a post on employee-manager relationships and how positivity or negativity decides the employee's future with the company. In the now-viral post, Alagh claimed, "Employees don't leave companies, they leave managers. " She added how this statement is the most quoted one in leadership and how it's true that an employee's day-to-day experience with their manager is a deciding factor in whether they stay, grow or walk away. Sharing her experience of observing hundreds of teams in the initial stages, she explained how certain management styles can push even the most talented employees out of the company. 8 types of managers that high performers can't work with Image credits: LinkedIn/Ghazal Alagh Alagh went on to define 8 types of managers that high performers find hardest to work with. These were: The Micro manager : The one who oversees every detail and leaves no space for trust or autonomy The Credit Taker : The one who is quick to celebrate wins but slow to share recognition The Ghost : The one who is hard to approach and offers little support or feedback The Volcano : The one who is temperamental and makes consistency impossible for teams The Information Hoarder : They keep the knowledge close to them, thus stalling team growth The Never-Satisfied : While they raise the bar consistently, they rarely acknowledge the progress The Favoritist : The one who selects a few and focuses their energy on them, leaving the others sidelined The Risk-Free Boss : They shy away from innovation and limit new ideas and growth The successful entrepreneur who has appeared on shows like 'Shark Tank India' went on to emphasise how trust, respect and everyday leadership build true retention asking people what kind of leadership they had personally seen that made the biggest difference- inspiring them to stay or pushing them to move. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Wenn du dir die Zeit am Computer vertreiben musst, ist dieses Spiel ein Muss in 2025! Kein Download Forge Of Empires Jetzt spielen Undo Netizens support Alagh's views Many people on the internet came out in support of Alagh's views adding how bad leadership can't be disguised as tough love and it doesn't just ruin a workplace but also an employee's confidence, self-worth and peace of mind. "Perks don't fix poor leadership. People stay for leaders who have their backs and let them grow," wrote a person in the comments. Some even pinpointed the worst types as "risk-free boss" and "never-satisfied" ones. "Most people don't quit the job, they quit how the job feels because of the person leading them," added another.
