Gold most stable asset during geopolitical tensions: RBI staff study

Gold has emerged as the most stable asset during episodes of geopolitical stress, and crude oil has been more sensitive than others when it comes to regional conflicts and sanctions, according to a report in the Reserve Bank of India’s (RBI’s) monthly bulletin.

- AATHIRA VARIER

Silver and the United States Treasury have showed moderate reactions.‘The report has been authored by RBI staffers with the guidance of Deputy Governor Poonam Gupta. The views in the report are those of the authors and not of the RBI, it was clarified.

“The findings show that crude oil is most sensitive to geopolitical shocks, consistent with its exposure to supply disruptions and regional conflicts. In contrast, gold remains the most stable, reaffirming its traditional role as a safe haven asset. Silver lies in between; more volatile than gold due to industrial demand exposure, but less sensitive than oil,” the report said, adding that the recent rally in 2022-25 further reflected investors’ response to systematic uncertainty and global tensions.

“Gold’s reputation as a hedge against inflation and a store of value makes it attractive to central banks and institutional investors,” the paper noted.