Central banks betting big on gold amid global uncertainty

Purchases hit a 3-year high in 2018 as trade tensions and volatile yields kept markets on the edge

Central banks across the world seem to be aggressively adding gold to their foreign exchange (forex) reserves. Last year (till November), their net gold purchases stood at 480 tonnes – the highest since 2015, according to data from the World Gold Council (WGC).

Following the global trend, the Reserve Bank of India (RBI) has also started adding gold to its reserves, and in little less than a year, the RBI has added nearly 40 tonnes. The share of gold in the RBI’s forex reserves rose to 5.9 per cent, taking its total gold holding to 592 tonnes in November.  

“Central