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The Reserve Bank of India (RBI) has dismissed reports suggesting it sold a significant portion of its gold reserves, stating that the country's physical gold holdings remain unchanged despite recent fluctuations in the value of its reserve assets. The clarification came after a media report claimed the central bank likely sold approximately $12 billion worth of gold during the two weeks leading up to May 22 while simultaneously increasing foreign-currency assets. In a statement released on Wednesday, the RBI said reports about a sale of gold reserves were incorrect and emphasized that its physical gold stock continues to stand at 880.52 tonnes. The denial comes at a time when investors are closely monitoring central bank gold purchases and reserve management strategies as global economic uncertainty continues influencing precious metals markets. Why Did Reports Suggest India Sold Gold Reserves? The speculation emerged after a review of publicly available reserve data showed a sharp decline in the value of the RBI's gold holdings during the week ending May 22. According to official data, India's foreign exchange reserves fell to $681.4 billion from $688.9 billion a week earlier. Part of that decline reflected a roughly $4.5 billion drop in the value of the RBI's gold assets. However, the central bank's statement suggests the decline was linked to changes in market valuation rather than any reduction in the quantity of physical gold held by the institution. Gold reserve values can fluctuate significantly as international gold prices rise or fall, even when central banks make no changes to their actual holdings. What Does This Mean for India's Gold Reserves? The RBI's response confirms that India's gold reserve strategy remains unchanged. With holdings of more than 880 tonnes, India remains one of the world's largest official gold holders. Central bank gold reserves are closely watched because they help diversify foreign exchange assets and can act as a store of value during periods of financial uncertainty. The clarification may also reassure investors who interpreted the earlier report as a sign that the RBI was reducing its exposure to gold. Instead, the latest statement indicates the decline reflected valuation effects rather than active selling. Gold Price in India Remains in Focus The development comes as the gold price in India continues attracting strong investor attention following recent volatility in global bullion markets. Gold prices have retreated from record highs in recent weeks as rising oil prices and expectations of higher interest rates weighed on precious metals. At the same time, central bank purchases and geopolitical uncertainty continue providing longer-term support for gold demand. Analysts say movements in the gold price in India will likely remain closely tied to global interest rate expectations, the US dollar, and developments in international commodity markets. RBI Gold Reserve Outlook The RBI's statement appears to put an end to speculation that India recently reduced its gold holdings. While the value of reserve assets may continue fluctuating alongside market prices, the central bank has made it clear that its physical gold stock remains unchanged. Investors will now focus on future reserve data, gold prices, and RBI policy decisions for clues about the broader outlook for India's financial markets. Did the RBI sell its gold reserves? No. The Reserve Bank of India said reports claiming it sold gold reserves were incorrect and confirmed that its physical gold holdings remain unchanged at 880.52 tonnes. Why did India's gold reserve value decline? The value of the RBI's gold holdings fell due to market price fluctuations rather than any reduction in physical gold reserves. What is the current gold reserve held by India? According to the RBI, India's physical gold reserves stand at 880.52 tonnes.