Gold Emerges As Key Reserve Asset
The resurgence of gold as a principal reserve asset highlights a major transformation in the global financial system, according to a report by CareEdge Ratings.
As per the report, the growing demand for gold reflects the rising fiscal vulnerabilities, persistent inflationary pressures, and geopolitical uncertainties shaping the world economy. It stated,
“Resurgence of gold as a principal reserve asset underscores a profound transformation in the global financial architecture.”
Shift Away From Traditional Anchors
The report shared that as traditional anchors such as the U.S. dollar and the Euro face growing scrutiny due to sovereign risks and structural weaknesses, gold has re-emerged as a politically neutral and inflation-resistant store of value.
Central Banks Recalibrate Reserve Strategies
Central banks across the world, especially those within the BRICS bloc, are now recalibrating their reserve strategies. They are reducing their over-reliance on dollar-denominated assets and moving towards a more diversified and resilient portfolio that prominently includes gold.
This strategic shift indicates not only a desire for monetary autonomy but also an effort to build protection against external shocks. It also reflects a broader rebalancing of global economic influence.
Surge In Gold Prices
Gold prices have seen a sharp surge in recent months. The yellow metal rose to an average of USD 3,665 per ounce in September 2025, nearly doubling in value from two years ago. In October, it touched a record high of USD 4,000 per ounce.
From January 2024 to mid-2025, gold prices increased by nearly 64 per cent, supported by strong investor sentiment and central bank purchases.
Decline In Dollar Holdings
The report also noted that the share of dollar holdings in central banks’ foreign exchange reserves has been steadily declining for over two decades. It fell from 71.1 per cent in 2000 to 57.8 per cent in 2024, showing a gradual shift away from the dollar.
Central banks have been actively diversifying their portfolios, reducing exposure to dollar-denominated assets and adding more gold as a strategic alternative.
Strong Domestic Demand In India
In India, gold imports in September 2025 reached a ten-month high, marking the third consecutive month of increase. The imports also surpassed the five-year monthly average. This rise points to strong domestic demand during the festive season, despite the persistently high gold prices.
Gold’s Strategic Significance
CareEdge Ratings said that gold’s renewed appeal is not just as a commodity but as a key strategic reserve asset amid a changing global financial landscape.
(Disclaimer: With inputs from ANI. This story is syndicated from ANI, mildly edited, and republished here for informational purposes.)
Also Read: ISRO Sets Sights On Mars: Mangalyaan-2 Mission Gears Up For 2030 Launch
Aishwarya is a journalism graduate with over three years of experience thriving in the buzzing corporate media world. She’s got a knack for decoding business news, tracking the twists and turns of the stock market, covering the masala of the entertainment world, and sometimes her stories come with just the right sprinkle of political commentary. She has worked with several organizations, interned at ZEE and gained professional skills at TV9 and News24, And now is learning and writing at NewsX, she’s no stranger to the newsroom hustle. Her storytelling style is fast-paced, creative, and perfectly tailored to connect with both the platform and its audience. Moto: Approaching every story from the reader’s point of view, backing up her insights with solid facts.
Always bold with her opinions, she also never misses the chance to weave in expert voices, keeping things balanced and insightful. In short, Aishwarya brings a fresh, sharp, and fact-driven voice to every story she touches.
