Reserve Bank is buying gold, joining central banks in stashing safe asset

The RBI may purchase 1.5 million ounces in 2019, or about 46.7 tons with an outlook based on extrapolating amounts bought in the first two months of this year.

India’s central bank is likely to join counterparts in Russia and China scooping up gold this year, adding to its record holdings and lending support to worldwide bullion demand as top economies diversify their reserves.

The Reserve Bank of India’s purchases are part of a wider picture across developing economies that are looking at de-dollarizing their foreign-exchange reserves, according to Ross Strachan at Capital Economics Ltd. The RBI’s buying trend can be sustained for a number of years in relatively small quantities, as part of a long-term diversification, he said.

The RBI may purchase 1.5 million ounces in 2019, or about 46.7