New -delhi, October 10 (IANS). Indian households currently own 34,600 tonnes of gold and its value is about $ 3.8 trillion or equal to 88.8 percent of GDP. This information was given in the report released by Morgan Stanley on Friday. Gold prices have had a increase in more than 50 percent over the past one year and remain high at all times. According to the report, the price of gold remains at $ 4.056 per ounce in the international market and has reached the price of gold in the domestic market Rs 1,27,300 per 10 grams. Since the beginning of this year, gold has given a yield of 54.6 percent in dollar terms and 61.8 percent in rupee terms. The report further said that the investment in gold has increased rapidly in recent months, as households prioritize financial assets and the ETF inflow has been US $ 1.8 billion over the past 12 months. This trend is expected to continue. According to the report, domestic consumption traditionally forms most of this question, but central bank purchases have also increased significantly. The Reserve Bank of India (RBI) increased its global reserves by about 75 tonnes by 2024, which took its total stake to 880 tonnes, which is now about 14 percent of India’s total foreign exchange reserves. The report states that since the adoption of the flexible inflationary-learning framework in 2016, which, together with positive real interest rates (an average of 1.7 percent since the normalization of the policy to the pandemic), helped to hold gold imports in the series 1-5 percent of GDP. This is much lower than the peak of 3.3 percent of GDP recorded in May 2013. Strong macroeconomic stability has helped to ensure that households do not develop excessive preference for saving in physical assets, thereby controlling the import of gold and reducing pressure on the current account shortage. -—IANS ABS/ Share This Story Tags
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