The Indian government has officially denied reports suggesting that the Reserve Bank of India (RBI) sold gold to bolster its foreign exchange reserves, branding the claims as 'false'. This denial follows a Bloomberg Economics analysis which indicated that the RBI might have sold gold valued at approximately $12 billion in response to economic pressures linked to the ongoing Iran-US conflict. The analysis highlighted a decrease in the RBI's bullion reserves, which was unexpected given the recent increase in import duties on gold, typically expected to enhance the value of such reserves. The situation has raised alarms regarding India's economic stability, particularly due to sustained capital outflows and rising oil prices, which are affecting the rupee's value. In light of these developments, RBI Governor Sanjay Malhotra is reportedly considering various measures to stabilize the currency, including a potential increase in the repo rate and seeking foreign investments. The situation has also sparked political criticism, with the opposition Congress party attacking the government over the alleged gold sales.