India's RBI Refutes Claim of $12 Billion Gold Sale

Indian officials have denied a recent report that the central bank sold a large portion of its gold reserves to support the country's foreign exchange position. The report, based on an economic analysis, had suggested the Reserve Bank of India may have sold approximately $12 billion worth of gold over a two-week period ending May 22.

Sources within the Finance Ministry stated that the report had been denied by the central bank. Official data appears to contradict the claim of a large-scale sale. The RBI's latest Annual Report shows the bank's gold holdings increased during the 2025-26 financial year. As of March 31, 2026, total gold held was 880.52 metric tonnes, an increase of 0.94 metric tonnes from the previous year. The report also noted a significant rise in the value of these holdings, attributed to higher global gold prices and the depreciation of the rupee.

The analysis suggesting a sale pointed to an unusual decline in the reported value of gold reserves during a period when the government had raised import duties on the precious metal, a move that typically increases valuation. The same analysis estimated the RBI added about $7.5 billion to its foreign currency assets...