India central bank caps lenders' net rupee FX positions at $100 million - Reuters

The Reserve Bank of India capping net rupee FX positions at $100 million tells you everything about currency pressure. When central banks start restricting forex exposure, they're worried about capital flight. India's been a massive gold buyer for decades, and this kind of currency control typically drives more physical demand. The rupee has been under pressure against the dollar, making gold even more attractive as a store of value for Indian households. RBI themselves have been steady gold buyers, adding to reserves consistently. This move reinforces why central banks globally are diversifying away from pure fiat exposure. For stackers, India represents 20% of global gold demand. Tighter FX controls mean that demand isn't going anywhere.