RBI Denies $12 Billion Gold Sale, Holdings Steady at 880.52 Tonnes

The Reserve Bank of India denied reports that it sold approximately $12 billion in gold to protect its foreign currency reserves from Middle East tensions. On June 3, 2026, the RBI clarified that its physical gold stock remains unchanged at 880.52 tonnes. This matters to investors because currency stability and reserve strength directly affect the rupee and India’s financial stability.

What the RBI Said About Gold Holdings

The RBI issued a statement on June 3, 2026, saying media reports of a gold sale were incorrect. The central bank emphasized that its physical gold stock remains at 880.52 tonnes with no change. The Press Information Bureau also fact-checked the claims, calling them fake and urging the public to rely only on official RBI data published in its Monthly Bulletin.

Why the Rumour Spread

A Bloomberg Economics analysis suggested the RBI may have sold roughly $12 billion in gold during the two weeks through May 22 while buying $7.5 billion in foreign currency assets. The analysis cited a fall in gold reserves despite import duty hikes that should have boosted their value. However, the RBI disputed this interpretation of the data.

Gold’s Growing Share of Reserves

According to the RBI, gold’s share of India’s foreign exchange reserves rose from 13.92% at the end of September 2025 to 16.70% on March 31, 2026, and further to 16.85% as of May 22, 2026. The value of gold holdings increased 63.6% from 4,31,624 crore rupees on March 31, 2025, to 7,06,162 crore rupees on March 31, 2026, due to higher international prices and rupee weakness.

Rupee Under Pressure From Global Tensions

The rupee weakened 7% in 2026, hitting a historic low of 96.86 per dollar on May 20. The decline reflects rising oil prices from West Asia tensions, which increased India’s import costs and foreign currency spending. The RBI has been managing reserves to stabilize the currency, though analysts debate whether gold sales occurred.

Final Thoughts

The RBI’s denial contradicts Bloomberg’s analysis but the central bank provided no detailed breakdown of transactions. Investors should monitor official RBI bulletins for clarity on reserve management as rupee pressure persists.

FAQs

Disclaimer:

The content shared by Meyka AI PTY LTD is solely for research and informational purposes.  Meyka is not a financial advisory service, and the information provided should not be considered investment or trading advice.