The Reserve Bank issued a master circular allowing resident entities to hedge their gold exposure in overseas markett viewing Gold prices shooting over the roof and projected to top the $2700 per ounce mark this year amidst rising geopolitical tension in the Middle East,

The move follows an announcement to this effect in the February 8, 2024 monetary policy statement regarding hedging of price risks of gold in overseas markets.

It may be noted that resident entities were permitted to hedge their exposure to price risk of gold on exchanges in the International Financial Services Centre from December 12, 2022.