Archive · 2 Jun 2025
Indian Forex Reserves Rise, Gold Investments Surge
Global gold investment surged in early 2025, with gold ETFs playing a major role due to global tensions.
India's forex reserves recently increased, reaching nearly $700 billion, though have decreased from its all-time high in September 2024.
Foreign investors sold off stocks on Friday, while domestic investors continued buying.
Gold demand increased, yet jewelry sales fell.
Investors are drawn to gold as a stable asset due to global uncertainty and market fluctuations.
India's central bank also increased its gold reserves.
India's forex reserves increased by $6.99 billion to $692.721 billion in the week ending May 23.
Global gold investment demand rose 170% in Q1 2025, fueled by ETF inflows and geopolitical tensions.
DIIs were strong net buyers in the last week of May, while FIIs were net sellers on Friday.
Gold ETF holdings expanded by 226 tonnes in Q1 2025, driven by European and Asian markets.
India's Reserve Bank increased its gold reserves, though its buying pace has slowed.
- Who
- The Reserve Bank of India, domestic and foreign investors.
- What
- India's forex reserves increased, while global gold investment demand and domestic investment increased.
- When
- In the week ending May 23, and the first quarter of 2025.
- Where
- India, and globally.
- Why
- Driven by increasing geopolitical tensions, strong domestic investor activity, and the appeal of gold as a safe-haven asset.
Foreign Investors
Domestic Investors
Investment Strategies
Foreign Investors
FIIs showed mixed activity, turning into net sellers on Friday amid global economic data and election results.
Domestic Investors
DIIs increased their equity holdings throughout the week, signaling robust domestic support amid global uncertainty and market fluctuations.
- India's Forex Reserves (Week Ending May 23)
- $692.721 billion
- Forex Reserve Increase (Week Ending May 23)
- $6.992 billion
- Increase in Global Gold Investment Demand (Q1 2025)
- 170%
- Global ETF Holdings Expansion (Q1 2025)
- 226 tonnes
- DII Net Purchases (May 26-30)
- ₹33,144.78 crore
- FII Net Equity Inflows (Month-to-date)
- ₹11,773.25 crore
