'Rumours': RBI Fact-Checks Viral Claim Of Selling 35 Tonnes Of Gold

The Reserve Bank of India (RBI) has officially refuted widespread claims circulating on social media that the central bank sold 35 tonnes of gold from its reserves.

Through the PIB Fact Check Unit, the RBI has taken it to social media platform X to dismiss the reports as "unsubstantiated rumours", urging the public to rely only on official channels for information about the institution. The RBI further advised users to visit its official website for accurate data.

The clarification comes amidst a period of intense global interest and volatility in the gold market, fueled by several major central banks upping their holdings of gold and driving up demand.

The official demand from central banks, particularly those in emerging markets took the spotlight, actively seeking to diversify away from the US dollar.

This behavior sharply accelerated following the freezing of Russia’s reserve assets in 2022, cementing gold’s reputation as a "sanction-proof" store of value. This strategic buying has pushed gold’s share of total global reserves to levels that are above 20%.

Another factor seen behind gold's rally is the "debasement trade". This is the belief that political turmoil would weaken the dollar and stoke inflation, leading investors to seek refuge in bullion.

However, data contradicts this narrative, as the dollar and Treasury bond yields have remained relatively stable, which is the opposite of what a true debasement hedge typically implies.

While strategic central bank buying provides a strong cushion on the downside, the current frenzy led by FOMO or fear of missing out, has likely pushed the metal far ahead of its real-term value.

By debunking the gold sale rumors, the RBI aims to prevent speculative panic and ensure the integrity of information about its holdings and reserves.