Reserve bank of india
In the last 5 years, the prices of gold have seen a rise of more than 3 times. On the other hand, after Russia Ukraine War after Kovid, the prices of crude oil have fallen by 45 to 50 percent. Has the parameter of measuring gold uncertainty changed? Now there is a need to look at the prices of gold instead of crude oil? Maybe yes. Reserve Bank of India Governor Sanjay Malhotra clearly pointing to this that the price of gold is probably working as a new barometer showing global uncertainties, while earlier crude oil used to do so.
Malhotra, currently referring to almost every country being financially ‘quite stressed’, said that the atmosphere of the current trade policy can damage the growth of some economies. He made the investors aware that in such a situation, the stock markets at the global level can see a decline. The RBI on Wednesday announced to keep the repo rate unchanged at 5.5 percent with a neutral monetary policy trend. Along with this, the Reserve Bank said that global economy has been more combative than estimated, but the future is still blurred.
How to take gold instead of crude oil
The RBI Governor said in the Kautilya Economic Conference 2025 that due to Jio Political Tension, oil prices could touch the sky in the last decade. But despite these stresses, the oil prices are currently in a very limited range. This can be due to the low importance of oil in not only India but worldwide, gross domestic product (GDP). He said that perhaps now gold prices are showing the same way as oil used to show. And it is becoming a big indicator of global uncertainties.
Advice to stock market investors
Malhotra, while sharing his views on various factors affecting the global economic possibilities, said that in the style of alerting that investors in the stock market are also looking more enthusiastic. In the background of the majority of the boom in global stock markets, the RBI Governor said that there could be an improvement in the near future. On Friday, the spot gold rose to $ 3,867 an ounce and is in the seventh consecutive week. On Thursday, yellow metal prices fell from a record high level of $ 3,896.9 an ounce to $ 3,856.6 an ounce.