RBI Alerts Gold Investors: Gold Stable Amid Geopolitical Shocks, Oil Volatile

• RBI study reveals gold maintains stability as a safe asset and hedge during geopolitical tensions, unlike highly volatile crude oil.
• Crude oil is most sensitive to global shocks, with volatility increasing tenfold under stressful conditions due to supply disruptions and sanctions.
• US Treasury securities exhibit traditional counter-cyclical safety but show increased volatility with rising geopolitical risk, attracting flight-to-safety demand.
• Silver displays characteristics similar to gold but with higher volatility, reflecting its dual role as a precious metal and industrial input.
• The study, "Decoding Safe Asset Volatility Amid Geopolitical Risks Using Neural Networks," analyzed four decades of data on various assets.

Why It Matters: Gold remains a stable hedge during geopolitical crises, while crude oil is highly sensitive.