Disclaimer: This article is based on an independent economic analysis by Bloomberg Economics derived from publicly available data. The Reserve Bank of India has not officially confirmed the reported gold sale figures.

The Reserve Bank of India (RBI) may have offloaded approximately $12 billion worth of gold reserves — equivalent to nearly ₹1.14 lakh crore — during the two weeks ending May 22, 2026, according to an analysis by Bloomberg Economics based on publicly available data.

The assessment, released on June 2, suggests the central bank sold the gold to support foreign exchange reserves amid the economic fallout from the escalating US-Iran conflict.

Why the Gold Was Sold

India, the world's third-largest crude oil importer, faces intensifying pressure on its forex resources as West Asia tensions drive up energy costs and weaken the rupee.

The moves come as India grapples with capital outflows and rupee depreciation pressure triggered by the ongoing Iran conflict and the effective closure of the Strait of Hormuz.

The rupee hit an all-time low of 96.923 per dollar on May 20 before RBI intervention helped it outperform most Asian currencies.

What the Data Shows

Bloomberg Economics' analysis shows that in the two weeks ending May 22, 2026, the RBI may have sold approximately $12 billion in gold reserves while simultaneously adding about $7.5 billion in foreign exchange assets.

Senior India Economist Abhishek Gupta noted the gold decline occurred despite higher import duties, which typically increase bullion stock value — a divergence interpreted as evidence of active selling rather than valuation shifts. As of March, the RBI held 880.52 metric tonnes of gold, with 77% stored domestically.

 

Strategic Shift in Reserve Management

With India's current account deficit widening and crude oil import costs surging due to the US-Iran conflict, liquid foreign currency assets offer greater flexibility for market intervention than gold.

Elevated capital outflows and a record-low rupee have heightened the need for immediately deployable reserves. Analysts suggest the RBI is prioritising assets that can quickly meet dollar demand from importers and investors exiting Indian markets.

RBI Has Not Confirmed the Sale

While the RBI has not officially confirmed any gold sales, the analysis has sparked discussion among economists and market participants about how India's central bank is responding to growing global economic uncertainty.

RBI Governor Sanjay Malhotra and the central bank continue to evaluate multiple policy options aimed at supporting the rupee and maintaining macroeconomic stability, including monetary policy adjustments, reserve management strategies, and measures designed to attract greater foreign investment inflows.