US President Donald Trump wants America to ‘Drill baby, drill’ for oil. In India Vedanta chairman Anil Agarwal has echoed a similar sentiment – but for gold! In a recent post on X (formerly Twitter), Anil Agarwal has expressed optimism about gold prices, and has said that this is the ‘best time for India to revive and revitalize its existing gold assets’
Anil Agarwal is confident about gold’s trajectory, citing predictions of prices surpassing $3,000 per ounce amidst global economic instability. The Vedanta chairman shared this in the post, highlighting the precious metal’s traditional role as a secure investment option and encouraged India to seize the opportunity.
“This is the best time for India to revive and revitalize its existing gold assets,” said Agarwal, talking about the stark contrast between India’s substantial imports of 800 tonnes annually and its minimal domestic production of just 1 tonne. He suggested that escalating prices would naturally attract investment towards local mining operations, making gold extraction economically feasible in shorter periods compared to new projects.
India continues to face challenges with substantial gold import expenses that impact its foreign exchange reserves. Despite possessing considerable unexplored gold deposits, the country’s production remains low due to administrative barriers, insufficient infrastructure, and historical policy constraints, according to an ET report.
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Gold prices showed positive movement on Monday, with safe-haven demand strengthened by worries over US President Donald Trump’s anticipated reciprocal tariffs and possible Federal Reserve interest rate reductions this year.
According to the RBI’s Friday announcement, gold reserves rose by $66 million to $74.391 billion in the week ended March 14.
RBI has substantially increased its gold purchases, acquiring 72.6 tonnes in 2024, quadrupling its previous year’s procurement. The RBI’s gold holdings now stand at 876.18 tonnes (valued at $66.2 billion) as of December 2024. India ranks amongst leading central bank gold purchasers, following Poland and Turkey, amidst currency instability post Trump’s electoral victory.
The RBI has intensified its gold acquisitions to protect against currency fluctuations and revaluation risks, additionally using reserves to support the rupee against dollar movements. The 2024 gold acquisition marks the highest since 2021 and represents the second-largest volume since the RBI recommenced gold purchases in 2017.
