Economic Survey: Gold, Silver Surge Signals Global Risk, Geopolitical Uncertainty

• The Economic Survey 2025–26 highlights a sharp rise in gold and silver prices, indicating growing global financial and geopolitical uncertainty.
• The Survey attributes the rally in precious metals to a weakening US dollar, negative real interest rates, and heightened geopolitical risks, driving investor preference for safe-haven assets.
• It notes that global trade is now shaped more by security concerns and political considerations rather than multilateral efficiency, leading to fragmentation and unpredictability.
• Gold and silver are excluded from core inflation measures, as their price movements are driven by global financial conditions, not domestic demand-supply.
• The Survey warns of risks to capital flows and exchange rates for economies with persistent trade deficits, emphasizing the need for strong manufacturing-based export ecosystems.

Why It Matters: Rising gold and silver prices signal increased global risk and geopolitical shifts, impacting trade and financial markets.