Gold’s spectacular rally—driving global prices close to the $4,000-per-ounce mark -- has left India grappling with a complex economic equation. A new report by SBI Research, titled “Coming of (a Turbulent) Age: The Great Global Gold Rush,” reveals that while the Reserve Bank of India’s (RBI) gold holdings have surged in value, domestic demand has weakened sharply, imports remain stubbornly high, and government liabilities under the Sovereign Gold Bond (SGB) scheme have ballooned. Advertisement

Prices rise and lots more

According to the report, global gold prices have jumped more than 50% year-to-date in 2025, driven by persistent geopolitical tensions and a weakening US dollar. This price rally has lifted the value of India’s official gold reserves—now around 880 tonnes—by $27 billion i

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