<p>A sharp rally of over 20 per cent in gold prices so far this month has led to a surge of about USD 5 billion (over Rs 22,000 crore) in the value of gold held by RBI, which acts as a custodian of the yellow metal for the government of India.<br /><br />The central bank keeps the yellow metal in the country's international reserves portfolio, where it had gold worth Rs 1,11,940 crore (USD 25.35 billion) at the end of last month.<br />The gold prices in domestic market has appreciated by 20.4 per cent since the beginning of this month to hit a record high of Rs 28,230 per 10 grams.<br /><br />The prices have also appreciated sharply by over 16 per cent in the international market from USD 1,616 per ounce to USD 1,880 currently.<br /><br />Taking into account a price rise of 20 per cent, the value of gold held by RBI has appreciated by over Rs 22,000 crore or about USD 5 billion dollar so far in August.<br /><br />The experts are anticipating further rise and believe that the gold prices might even touch Rs 30,000 level well before Diwali as investors are increasingly shifting funds to gold amid a free fall in equity markets.<br /><br />Gold has traditionally been a preferred high-value purchase for Indians, but mostly for jewellery purposes and as a means of preserving the family wealth. However, the trend is also picking up for gold as a pure investment play.<br /><br />RBI has also been increasing its exposure to gold in its international reserve portfolio in the past few years.<br /><br />RBI's gold holding had seen a significant increase of about USD 7 billion after it purchased 200 metric tonnes of gold from IMF on November 3, 2009.<br /><br />Before this purchase, gold accounted for only about 3 per cent of RBI's total international reserves, but it has now increased to nearly 8 per cent.<br /><br />The central bank is currently estimated to hold a total of 557.75 tonnes of gold.<br /><br />As per RBI data, its gold reserves have grown by Rs 22,376 crore (USD 6 billion) over the past one year, while it has gone up by Rs 11,254 crore (USD 2.9 billion) so far in the current calendar year 2011.<br /><br />RBI figures among 10 largest central banks across the world in terms of gold holding in foreign reserves portfolio.</p>
<p>A sharp rally of over 20 per cent in gold prices so far this month has led to a surge of about USD 5 billion (over Rs 22,000 crore) in the value of gold held by RBI, which acts as a custodian of the yellow metal for the government of India.<br /><br />The central bank keeps the yellow metal in the country's international reserves portfolio, where it had gold worth Rs 1,11,940 crore (USD 25.35 billion) at the end of last month.<br />The gold prices in domestic market has appreciated by 20.4 per cent since the beginning of this month to hit a record high of Rs 28,230 per 10 grams.<br /><br />The prices have also appreciated sharply by over 16 per cent in the international market from USD 1,616 per ounce to USD 1,880 currently.<br /><br />Taking into account a price rise of 20 per cent, the value of gold held by RBI has appreciated by over Rs 22,000 crore or about USD 5 billion dollar so far in August.<br /><br />The experts are anticipating further rise and believe that the gold prices might even touch Rs 30,000 level well before Diwali as investors are increasingly shifting funds to gold amid a free fall in equity markets.<br /><br />Gold has traditionally been a preferred high-value purchase for Indians, but mostly for jewellery purposes and as a means of preserving the family wealth. However, the trend is also picking up for gold as a pure investment play.<br /><br />RBI has also been increasing its exposure to gold in its international reserve portfolio in the past few years.<br /><br />RBI's gold holding had seen a significant increase of about USD 7 billion after it purchased 200 metric tonnes of gold from IMF on November 3, 2009.<br /><br />Before this purchase, gold accounted for only about 3 per cent of RBI's total international reserves, but it has now increased to nearly 8 per cent.<br /><br />The central bank is currently estimated to hold a total of 557.75 tonnes of gold.<br /><br />As per RBI data, its gold reserves have grown by Rs 22,376 crore (USD 6 billion) over the past one year, while it has gone up by Rs 11,254 crore (USD 2.9 billion) so far in the current calendar year 2011.<br /><br />RBI figures among 10 largest central banks across the world in terms of gold holding in foreign reserves portfolio.</p>