Synopsis : The Reserve Bank of India has firmly denied reports suggesting it sold gold worth $12 billion to support the country's foreign exchange reserves amid global market volatility. RBI clarified that its physical gold holdings remain unchanged at 880.52 tonnes, while the value of its gold reserves has surged due to rising global gold prices.
A fresh controversy erupted on Wednesday after reports claimed that the Reserve Bank of India (RBI) had sold a portion of its gold reserves to protect the country's foreign exchange assets from the fallout of escalating geopolitical tensions in the Middle East. However, the central bank has categorically denied the allegations, stating that its physical gold holdings remain unchanged.
In an official clarification, the RBI said its gold stock continues to stand at 880.52 tonnes and urged the public to rely only on information released through official channels. The statement came in response to media reports based on a Bloomberg Economics analysis, which suggested that India may have sold nearly $12 billion worth of gold during the two weeks leading up to May 22.
Rejecting the claim, the RBI stated, “The Reserve Bank of India has come across reports in certain sections of the media about RBI’s sale of gold. These reports are not correct.” The central bank emphasized that its physical gold holdings are transparently disclosed through its Monthly Bulletin.
The Press Information Bureau (PIB) also stepped in to debunk the reports, calling the claim "fake." According to PIB, the share of gold in India's foreign exchange reserves has actually increased over recent months, rising from 13.92% in September 2025 to 16.85% as of May 22, 2026.
While the quantity of gold held by the RBI has remained largely stable, the valuation of those holdings has surged sharply. The value of India's gold reserves has risen more than 64% over the past year, reaching nearly ?11 lakh crore by May 22. The increase has been driven by a significant rally in international gold prices and the depreciation of the Indian rupee against the US dollar.
The debate comes at a time when global markets remain highly sensitive to developments in the ongoing Iran conflict and broader Middle East tensions. Rising geopolitical uncertainty has fueled demand for safe-haven assets such as gold while also impacting crude oil prices, commodity markets, and global trade flows.
The RBI's latest assessment noted that geopolitical tensions continue to create volatility across global financial markets. However, the central bank maintained that India's strong services exports, positive foreign direct investment inflows, robust foreign exchange reserves, and proactive policy measures provide a significant buffer against external shocks.
Despite market speculation, the RBI's clarification has put to rest concerns that India was liquidating its gold reserves. Instead, the data indicates that the country's gold holdings remain intact, with their rising valuation reflecting global market movements rather than any change in physical ownership.
Disclaimer : This article is for informational purposes only and should not be considered financial or investment advice. Readers should verify information through official sources and consult qualified professionals before making financial decisions.
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