Mumbai, Nov 6 : The resurgence of gold as a key reserve asset marks a significant transformation in the global financial system, according to a report by CareEdge Ratings. The report highlights that gold’s growing appeal reflects deepening fiscal vulnerabilities, persistent inflationary pressures, and rising geopolitical tensions shaping the global economy.
“The resurgence of gold as a principal reserve asset underscores a profound transformation in the global financial architecture,” the report stated.
As traditional reserve anchors such as the US dollar and the euro come under increasing scrutiny due to sovereign risks and structural weaknesses, gold has re-emerged as a politically neutral and inflation resistant store of value.
Central banks worldwide particularly those within the BRICS bloc are recalibrating their reserve management strategies. They are moving away from heavy dependence on dollar-denominated assets toward a more diversified and resilient portfolio that prominently features gold.
This strategic realignment reflects not only a push for greater monetary independence but also a proactive effort to safeguard against external shocks, symbolizing a wider rebalancing of global economic power.
Gold prices have seen a sharp rally in recent months. The precious metal surged to an average of USD 3,665 per ounce in September 2025, nearly doubling in value compared to two years ago. In October, it reached an all time high of USD 4,000 per ounce. Between January 2024 and mid-2025, gold prices soared nearly 64%, driven by strong investor sentiment and robust central bank buying.
The CareEdge report further noted that the share of dollar holdings in central banks’ foreign exchange reserves has been steadily declining for over two decades from 71.1% in 2000 to 57.8% in 2024 signaling a sustained shift away from the greenback.
In India, gold imports hit a ten month high in September 2025, marking the third consecutive monthly increase and exceeding the five-year average. The rise points to strong domestic demand during the festive season, despite persistently high prices.
CareEdge concluded that gold’s renewed prominence is not merely as a commodity but as a strategic reserve asset, reinforcing its timeless status as a safe haven amid a rapidly evolving global financial landscape.