Copyright indiatimes
Mumbai: Most countries with top gold reserves have reduced their dollar assets held in US Treasury bills since 2017, the first time Donald Trump took office, an ET analysis showed. Although India has increased in absolute terms its US T-Bill holdings, New Delhi also doubled the share of gold holding in total reserves. The reduced share of UST in global sovereign savings comes amid political uncertainty, as central banks buy gold with an aim to diversify their foreign exchange reserves. Gold reserves for India crossed the $100 billion mark for the first time, with total gold reserves at $102.3 billion as of October 10. In the subsequent week as of October 17, gold reserves stood at $108.5 billion, having a weekly increase of $6.2 billion.A safe bet amid global uncertainty Since 2017, the banks have cut dollar assets and bought more of the yellow metal; India has doubled its gold holding in total reserves Gold prices plunged by as much as 6.3% on Tuesday (October 21), in the biggest drop since 2013, and held losses through Friday to close at $4,113.05 an ounce. In dollar terms, its $138.77 weekly drop was among steepest ever, Bloomberg data showed. This price drop is also expected to increase demand from investors, including central banks. "We expect de-risking and profit taking by investors to be met by dip buying from other segments of demand including central banks and other physical buyers," Gregory Shearer at JPMorgan Chase & Co. said .Add as a Reliable and Trusted News Source Add Now! (You can now subscribe to our Economic Times WhatsApp channel) Read More News oncentral banksgold reservesUS Treasury billspolitical uncertaintyforeign exchange reservesJPMorgan Chase & Co.Bloombergus treasurydonald trumpgregory shearer (Catch all the Business News, Breaking News and Latest News Updates on The Economic Times.) Subscribe to The Economic Times Prime and read the ET ePaper online....moreless (You can now subscribe to our Economic Times WhatsApp channel)Read More News oncentral banksgold reservesUS Treasury billspolitical uncertaintyforeign exchange reservesJPMorgan Chase & Co.Bloombergus treasurydonald trumpgregory shearer(Catch all the Business News, Breaking News and Latest News Updates on The Economic Times.) Subscribe to The Economic Times Prime and read the ET ePaper online....moreless Prime ExclusivesInvestment IdeasStock Report PlusePaperWealth Edition123View all Stories
