RBI Governor Sanjay Malhotra suggested on Friday that gold prices might serve as a fresh gauge for global uncertainties, a role previously held by crude oil. This shift comes as geopolitical tensions, which would have historically driven oil prices up, now seem to impact gold more significantly.
Speaking at the Kautilya Economic Conclave 2025, Malhotra expressed concerns over the current global economic scenario. He noted that many countries are financially strained and warned that existing trade policies could hinder economic growth. He also highlighted the complacency of equities, hinting at a potential market correction ahead.
The Reserve Bank of India retained its interest rate at 5.5%, pointing to unanticipated global economic resilience. However, gold demonstrated persistent gains, with prices increasing to USD 3,867 an ounce, underscoring its emerging role as a financial barometer in uncertain times.