Gold is back in the spotlight, favored by top policymakers and leading central banks. According to the World Gold Council, the Reserve Bank of India has emerged as the leader in gold purchases among global central banks this year.

In June, the Indian regulator acquired 9.3 tons of gold, well above the average monthly purchase volume of 5.6 tons recorded earlier this year. According to WGC estimates, the RBI's gold purchases totaled 37.1 tons in the first half of 2024, marking the highest level since 2013.

The RBI is the primary gold buyer among central banks this year, the organization said. The Indian central bank's volume of gold purchases was second only to Turkey's (43 tons), surpassing China's 28.9 tons. Notably, the People's Bank of China did not add to its reserves in May and June 2024.

For now, the RBI's gold reserves have reached a record 840.7 tons. WGC experts estimate that this represents 8.7% of India's total foreign reserves, up from 7.4% in 2023.

As of the end of March, the Indian regulator held 822.1 tons of gold, with 413.8 tons stored overseas, mainly in the United Kingdom. Notably, India usually keeps its gold reserves in the UK. Recently, the RBI has transferred just over 100 tons of the precious metal from the UK to its domestic vaults, the first such move since 1991 when a significant amount of gold was added to local reserves.

Last week, the price of gold reached a new all-time high of $2,468 per troy ounce, driven by increased demand for the metal as a safe-haven asset amid market instability.