The Reserve Bank of India (RBI) governor Sanjay Malhotra on Friday dismissed speculation that the central bank had been selling gold from its reserves, clarifying that the RBI's gold holdings have in fact increased marginally and that fluctuations in the reported value of gold reserves are primarily due to weekly market-price revaluation.
Responding to a question during the post-monetary policy press conference on reports suggesting gold sales by the RBI, Malhotra said, "No. RBI has not sold gold. There has only been a marginal increase in our gold holdings."
The clarification comes amid market speculation after recent reserve data showed a decline in the value of the RBI's gold reserves. News agency Bloomberg had published an analysis saying that RBI could have sold gold worth $12 billion in the two weeks period to 22 May 2026, a claim denied by the central bank.
Explaining the movement, the governor said the RBI reports its gold holdings in US dollar terms and revalues them every week based on prevailing international gold prices.
"Gold holdings are reported in dollar terms and are revalued every week based on prevailing market prices. Changes in valuation should not be interpreted as changes in physical holdings," he said.
The remarks indicate that a fall in the reported value of gold reserves does not necessarily mean that the RBI has reduced its physical gold stock. Instead, such changes may reflect fluctuations in global gold prices and currency movements that affect the dollar valuation of the reserves.
Gold forms an important component of India's foreign exchange reserves alongside foreign currency assets, Special Drawing Rights (SDRs) and the country's reserve position with the International Monetary Fund (IMF).
The RBI has steadily increased its gold holdings over the past few years as central banks globally diversified reserve assets amid geopolitical uncertainties and volatility in international financial markets.
The governor's clarification comes at a time when gold prices have witnessed sharp swings due to concerns over global growth, geopolitical tensions and expectations around interest-rate trajectories in major economies.
Malhotra's comments sought to draw a distinction between valuation changes and actual reserve management operations, emphasizing that the recent movement in gold reserve figures should not be construed as active selling by the central bank.