RBI Denies Gold Sale Reports, Says Holdings Remain Unchanged

The Reserve Bank of India on Wednesday dismissed reports suggesting it had sold part of its gold reserves to support foreign exchange assets, stating that its physical gold holdings remain unchanged at 880.52 tonnes.

In a statement, the central bank said media reports claiming that it had reduced its gold reserves were "not correct". The RBI said its physical stock of gold continues to stand at 880.52 tonnes.

The clarification follows an analysis by Bloomberg Economics that suggested the RBI may have sold around $12 billion worth of gold in the two weeks ended May 22 while increasing foreign-currency assets by $7.5 billion. The analysis argued that a decline in the reported value of gold holdings, despite rising international bullion prices and changes in import duties, pointed to possible gold sales by the central bank.

The RBI's statement effectively rules out that interpretation, confirming that there has been no reduction in its physical gold stock.

The central bank's latest Half-Yearly Report on Management of Foreign Exchange Reserves showed gold holdings at 880.52 tonnes as of March-end, with an increasing share of reserves held domestically. The report also noted that changes in reserve asset values can reflect valuation effects arising from movements in market prices and exchange rates rather than transactions.

Separately, PIB Fact Check, the government's fact-checking unit, termed social media claims regarding RBI gold sales as misleading and reiterated that the central bank's gold holdings remain intact.

The clarification comes at a time when market participants are closely tracking India's external-sector position amid persistent portfolio outflows, elevated crude oil prices and heightened geopolitical tensions in West Asia. Recent movements in the RBI's reserve composition had prompted speculation over whether the central bank was actively reallocating assets to support foreign exchange reserves.