Gold’s stunning rally, which has driven global prices close to $4,000 per ounce, has left India facing a complex equation. According to a new report by SBI Research, while the value of the Reserve Bank’s gold holdings has surged, domestic demand has weakened, and imports continue to dominate supply. However, it also increased the government’s losses on Sovereign Gold Bonds (SGBs ), showing how rising prices have created economic strain despite record valuations.

Prices rise, demand falls, dependency deepens

The report, titled “Coming of (a Turbulent) Age: The Great Global Gold Rush,” noted that gold prices have climbed over 50% year-to-date in 2025, driven by geopolitical tensions and a weaker dollar . As a result, the RBI’s gold reserves now around 880 tonnes have gained in va

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