Last Updated : 23 November 2011 at 17:05 IST
India should add more gold to its reserves: RBI paper
With gold being a part of the forex reserves at just a mere7.9%, India should target buying more gold in the future, a Reserve bank of India (RBI) working paper advises. The 'optimum level of gold' as a part of the reserve however a difficult question to answer.
- QE tapering fears to add to downside pressure on commodities
- Spot gold prices gained around 0.4 percent today taking cues from upbeat global market sentiments. However, declining trend in SPDR Gold holdings coupled with strength in the DX acted as negative factors. In the Indian markets, gold prices declined a
- read more
India's production of pulses is estimated at 19 million tons for 2013-14 and the demand for pulse..
By Col. Ajay
As per financial astrology, transit OD Sun in Saturn house is ..
MUMBAI (Commodity Online): With gold being a part of the forex reserves at just a mere7.9%, India should target buying more gold in the future, a Reserve bank of India (RBI) working paper advises. The 'optimum level of gold' as a part of the reserve however a difficult question to answer.
In the wake of the global economic crisis and economic uncertainty, central bank demand for gold has gone up. As such, India should not consider itself an exception. After the 200 tonne gold purchase from the IMF in 2009, India has not added any significant quantity of gold into its reserves. But, the economic climate calls for further additions to the India's gold reserves, even in small quantities.
With gold prices reacting strongly to the US credit rating downgrade and the debt crisis in European nations, gold as a part of foreign reserves will continue to play a key role and as such India should build its gold reserves.
- Gold options indicates bullish sentiment: Saxo Bank
- Leaf rust may cut Central America Coffee output by 9.7% in 2013-14
- India fertiliser demand remains robust, phosphates market dull
- Banks scaling down Commodity business, will it impact trade volumes?
- Global Crude Oil demand may grow by 1.04mb/d in 2014: Barclays
- Firm data keeps US Gold down, MCX Gold opens negative