TY - JOUR
AU - Paramati, Sudharshan Reddy
AU - Shamsabadi, Hussein Abedi
AU - Kummitha, Harshavardhan Reddy
PY - 2022
DA - September
TI - How did gold prices respond to the COVID-19 pandemic?
JO - Applied Economics Letters
DO - https://doi.org/10.1080/13504851.2022.2117773
AB - This paper investigates the asymmetric impact of COVID-19 on gold prices by making use of high frequency data and a recently developed nonlinear estimation approach. The analysis considers three main dimensions of COVID-19: daily new cases, recoveries and deaths. The findings reveal that decreases in COVID-19 new cases and increases in recoveries cause an upswing in gold prices. These evidences imply that the reduction in new COVID-19 cases or more recoveries from COVID-19 improves both investors’ and consumers’ psychological confidence. In other words, the investors and consumers become more optimistic about their future and tend to demand more gold. On the other hand, the increases (decreases) in policy uncertainty, oil prices, and world stock index performance elevate (reduce) gold prices. The study also establishes a positive nexus between equity market uncertainty and gold prices.
PB - Taylor and Francis
UR - https://discovery.dundee.ac.uk/en/publications/7e2a06aa-daa3-4f1c-973b-86c24a542fa6
KW - Coronavirus (COVID-19)
ER