India's Central Bank May Have Sold Gold Reserves Amid Middle East Conflict

India's central bank may have sold a portion of its gold reserves to protect its foreign exchange assets from the ripple effects of the Middle East conflict, according to an analysis by Bloomberg Economics based on public data. According to Jin10, Abhishek Gupta, a senior India economist at the institution, wrote in a report that the Reserve Bank of India (RBI) might have sold approximately $12 billion worth of gold reserves in the two weeks ending May 22, while purchasing $7.5 billion in foreign exchange assets. Gupta's analysis is based on the observation that despite an increase in gold import duties, the reported value of the RBI's gold reserves has decreased, indicating potential gold sales. As of the end of March, the RBI held 880.52 tons of gold, with 77% of it held domestically.