The Reserve Bank of India has moved 104 tonnes of gold from overseas storage to vaults inside India, bringing total domestic gold holdings to around 510 tonnes. The remaining roughly 370 tonnes are still held abroad, primarily in the UK. Total RBI gold reserves now stand at 880 metric tonnes. The shift is a logistical reallocation, not a new purchase. Rising gold prices have done most of the work here. The metal's rally pushed gold's share of India's total foreign exchange reserves from 13.92% to 16.7% in six months, without the RBI necessarily buying more. That matters because a higher gold share changes the composition of reserves, which central banks and analysts watch as a signal of how a country manages currency risk. The RBI has been gradually repatriating gold since 2022, moving holdings closer to home. Investors and analysts will watch whether further repatriation follows, and whether gold's rising weight in reserves prompts any formal reserve policy adjustment.
US inflation hit 4.1% in May 2026, its highest level in three years, driven by rising energy prices, keeping a Federal Reserve rate hike in September firmly on the table. Consumer spending rose on tax refunds and a stock market rally, while business investment in AI equipment also rebounded.
RBI data through May 2026 shows that its 85 basis point repo rate cuts since February 2025 are only partially reaching borrowers, with lending rate transmission described as moderated. Slower pass-through limits relief for loan holders and may pressure the RBI to cut rates further to achieve its growth goals.
U.S. consumer prices rose at a 4.2% annual rate in May, the fastest pace in three years, driven by a spike in energy costs. The reading puts pressure on the Federal Reserve to respond, with potential knock-on effects for interest rates, borrowing costs, and household purchasing power.
US inflation rose to a three-year high in May, driven by surging gas and energy prices tied to the Middle East conflict. The reading complicates the Federal Reserve's path toward cutting interest rates and keeps pressure on household budgets.
