New Delhi: In a major move the Reserve Bank of India (RBI) has bought 57.5 tonnes of gold in the financial year 2024-25. Gold prices rose by more than a third during volatility in global financial markets. Hence the RBI has increased its gold reserves as a safe asset. India’s bank regulator’s purchase matches the trend of central banks around the world buying the yellow metal. Notably gold is considered a safe and reliable asset and protects against inflation. This purchase is the second-largest annual gold purchase by the central bank since the start of reserve creation in December 2017. Several central banks around the world have increased their gold reserves to reduce risk due to geopolitical uncertainties fluctuations in the US dollar and concerns about American government bonds. As per the latest central bank data the Reserve Bank of India (RBI) increased its gold reserves to 879.6 tonnes by March 2025 up from 822.1 tonnes the previous year. RBIs gold purchases peaked at 66 tonnes in 2021-22 followed by 35 tonnes and 27 tonnes in subsequent fiscal years. Increased gold investment is attributed to significant dollar fluctuations since late 2024. Focus On Gold Increased Experts say that the central banks focus on gold is due to the declining appeal of US Treasuries. Sajal Gupta head of currency and commodities at Nuwama said All global central banks are reducing their dependence on US Treasuries and increasing their gold reserves. The World Gold Councils 2024 Trends report highlights continued strong central bank demand for gold influenced by global economic and political factors.  Indias increased reliance on gold reserves is also noted with the golds share of its foreign exchange reserves rising to 11.8% by April 11 2025 up from 8.7% the previous year. This rise significantly boosted the value of Indias gold holdings due to a substantial increase in gold prices. Included In The Top 10 Global Central Banks The Reserve Bank of India (RBI) a top ten global holder of gold reserves maintains a conservative approach to gold sales due to political considerations unlike some other central banks. The RBI prioritizes safety liquidity and returns in managing its foreign exchange reserves utilizing gold purchases as a hedge against currency volatility. However after consistent monthly gold acquisitions through November 2024 RBIs purchases slowed significantly in December February January and March. This reduced purchasing activity according to the World Gold Council might signal a shift towards a more balanced strategy in the RBIs gold reserve management.