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RBI Bulletin Study: Gold Safest Asset in Geopolitical Stress

24 December 20251 min read
ECONOMYRBI Bulletin Study:Gold Safest Assetin GeopoliticalStress24 December 2025safalsetu.com

Why in the news

An RBI bulletin study found gold steadiest and crude oil most sensitive when geopolitical risk rises.

Key facts

  • Authored by RBI staff guided by Poonam Gupta; views are theirs, not official RBI policy.
  • Measured against the Geopolitical Risk (GPR) Index; high gold prices in 2022–2025 mirror global uncertainty.

Asset response

AssetSensitivityWhy
GoldLowestSafe haven, inflation hedge, store of value
SilverMiddleIndustrial demand adds volatility, still below crude
US TreasuriesSteadily rising volatilityFlight to safety, shifting capital flows
Crude oilHighestSupply disruptions, conflicts, sanctions

Exam angle

  • Source: RBI monthly bulletin; index: GPR.

Test yourself

1. Which asset did the RBI bulletin study find most stable during heightened geopolitical stress?

Gold was the most stable and least sensitive asset.

2. Which asset showed the highest sensitivity to geopolitical shocks in the RBI bulletin study?

Crude oil was the most sensitive, with volatility rising as the GPR Index increased.

3. Which index measures geopolitical stress in the RBI staff study on asset stability?

The study tracks volatility against the Geopolitical Risk (GPR) Index.

This topic is part of Daily Current Affairs 23 & 24 December 2025 (15 topics).

All topics of the dayDay quizDecember 2025

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