Industrialist Anil Agarwal has struck a bullish note on gold, quoting prediction of a continued rally beyond the $3,000 per ounce mark amid global economic uncertainty. Taking to X (formerly Twitter), the Vedanta chairman emphasised the metal’s historic safe-haven appeal and urged India to capitalise on the moment.

“This is the best time for India to revive and revitalize its existing gold assets,” Agarwal posted, pointing out the country’s heavy reliance on imports—800 tonnes annually versus a meager 1-tonne domestic output. With prices soaring, he argued, investor interest in local mining is bound to increase, making gold extraction viable with shorter timelines than greenfield projects.

India has long grappled with a massive gold import bill, which strains foreign exchange reserves. While the country possesses significant untapped gold deposits, production has remained minimal due to regulatory hurdles, lack of infrastructure, and past policy roadblocks. Agarwal’s push aligns with broader efforts to boost domestic mining and reduce reliance on imports.

Gold edged higher on Monday as concerns over U.S. President Donald Trump's impending reciprocal tariffs and the potential for interest rate cuts by the Federal Reserve this year supported bullion's safe-haven appeal.

Gold reserves increased by USD 66 million to USD 74.391 billion during the week ended March 14, the RBI said on Friday.

The Reserve Bank of India (RBI) has been buying gold aggressively, adding 72.6 tonnes in 2024, a fourfold increase from the previous year. This brings its total gold reserves to 876.18 tonnes (valued at $66.2 billion) as of December 2024. The move makes India one of the top central bank gold buyers, behind Poland and Turkey, amid heightened currency volatility following Trump’s election.

In February, Congress MP Manish Tiwari questioned in the Lok Sabha whether this shift signaled a move away from the US dollar. However, Finance Minister Nirmala Sitharaman clarified that India's rising gold reserves are part of a diversification strategy, not an attempt to replace any international currency. While the US dollar remains a key component of forex reserves, gold holdings help balance the portfolio.