Gold prices new barometer of global uncertainty like crude oil in past, RBI Governor Malhotra says

RBI Governor Sanjay Malhotra on Friday said perhaps gold price is acting as a new barometer reflecting global uncertainties as the crude oil used to be in the recent past.

While mentioning that fiscally almost every country today is "quite stressed", Malhotra also said current trade policy environment could damage growth in some of the economies and cautioned that globally, stock markets might see a correction.

The Reserve Bank of India (RBI), while leaving the key interest rate unchanged at 5.5 per cent with a neutral monetary policy stance on Wednesday, said the global economy has been more resilient than anticipated but outlook remains clouded.


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"Despite geopolitical tensions that would have sent oil prices soaring in an earlier decade, they (oil prices) have been very range bound. This could be due to a decline in oil intensity in GDP, not just in India, but across the world.

"Perhaps gold prices now are showing the kind of movement that oil used to that is acting as a barometer of global uncertainty," the RBI Governor said at the Kautilya Economic Conclave 2025.

Sharing his views on various factors influencing the global economic prospects, he sounded a note of caution, saying that equity markets, too, seem to be a bit complacent.

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Against the backdrop of technology stocks leading most of the global stock rallies, the Governor said a "correction might be in the offing".

On Friday, spot gold edged higher to USD 3,867/ounce and is poised for a seventh consecutive weekly gain. The yellow metal prices retreated on Thursday, pulling back from a record high of USD 3,896.9/ounce to close at USD 3,856.6/ounce.