New Delhi, December 15: The Reserve Bank of India (RBI) held 879.58 metric tonnes of gold as of March 31, 2024, marking an increase of 57.48 tonnes from 822.10 tonnes a year earlier. This gold reserve strengthens confidence in the Indian rupee and supports the country's external economic stability, Minister of State for Finance Pankaj Chaudhary informed the Lok Sabha.

Gold and silver prices in India are largely influenced by international prices, the rupee's exchange rate against the dollar, and tariffs. The recent rise in prices is driven by global uncertainty, geopolitical tensions, and increased demand for safe-haven assets like gold, especially by central banks.

Chaudhary noted that gold serves as both a consumption item and an investment, with price increases positively impacting household wealth. While the government doesn't control metal prices, it lowered the customs duty on gold imports from 15% to 6% in July 2024 to ease consumer costs.

Additionally, initiatives like the Gold Monetisation Scheme, Gold ETFs, and Sovereign Gold Bonds aim to reduce demand for physical gold and promote domestic supply, helping manage price pressures and reduce reliance on imports. The government also regulates bullion imports to ensure market stability.