The Reserve Bank of India (RBI) has firmly rejected reports claiming that it sold nearly $12 billion worth of gold reserves to support India’s foreign exchange position amid global geopolitical tensions.
The clarification comes after media reports suggested that the central bank may have reduced its gold holdings to shield foreign currency reserves from the economic impact of the ongoing West Asia conflict.
However, the RBI on Wednesday categorically denied the claims, stating that its gold reserves remain unchanged and that the reports were inaccurate.
RBI Clarifies Position on Gold Reserves
In an official statement, the central bank said reports alleging a sale of gold worth approximately $12 billion were incorrect.
“The RBI emphasises that these reports are not correct,” the statement said.
The bank further clarified that India’s physical gold stock continues to stand at 880.52 tonnes, with no reduction in holdings.
The RBI advised the public and market participants to rely only on official information released by the central bank regarding reserve management and financial matters.
PIB Labels Gold Sale Reports as ‘Fake’
The government’s Press Information Bureau (PIB) also stepped in to counter the claims, issuing a fact-check and describing the reports as misleading.
According to the PIB, the share of gold in India’s foreign exchange reserves has actually increased in recent months.
Data cited by the PIB showed that gold accounted for 13.92% of India’s forex reserves in September 2025, rising to 16.70% by March 31, 2026, and further increasing to 16.85% as of May 22, 2026.
The figures indicate a growing role of gold in India’s reserve portfolio rather than a reduction in holdings.
What Triggered the Controversy?
The clarification followed a Bloomberg report that suggested the RBI may have sold around $12 billion worth of gold during the two weeks ending May 22 while simultaneously purchasing approximately $7.5 billion in foreign currency assets.
The report argued that the RBI’s market operations may have helped stabilise the rupee during a period of heightened global uncertainty.
It also noted that the Indian currency had shown relative resilience compared with several Asian peers despite ongoing geopolitical tensions and fluctuations in crude oil prices.
India’s Gold Reserves Remain Strong
As per RBI data, India continues to maintain one of its highest-ever gold reserve levels.
By the end of March 2026, the RBI held 880.52 metric tonnes of gold, with nearly 77% stored within India. This marks a significant increase from six months earlier when around 66% of the country’s gold reserves were held domestically.
The remainder is stored with global institutions such as the Bank of England and the Bank for International Settlements, ensuring diversification and security.
Why the Clarification Matters
The speculation around a possible gold sale emerged at a time when global markets are closely monitoring central bank actions amid geopolitical tensions, volatile oil prices and currency fluctuations.
Any significant reduction in gold reserves by a major economy can influence investor sentiment and raise questions about reserve adequacy. By swiftly addressing the reports, the RBI has sought to reassure markets that India’s reserve position remains stable and that no extraordinary gold liquidation has taken place.
With India’s gold holdings unchanged and the share of gold in forex reserves continuing to rise, the central bank’s message is clear: reports of a massive gold sale are unfounded.
