Gold most stable asset during geopolitical tensions, says RBI staff study

An RBI staff study says gold remains the most stable asset during geopolitical stress, while crude oil is the most sensitive to shocks; silver and US Treasuries show intermediate reactions

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.

 

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