The threshold effect of market sentiment and inflation expectations on gold price

Huang, Xiaoyong; Jia, Fu; Xu, Xiangyun; Shi, Yu

doi:10.1016/j.resourpol.2019.03.014

Cited by 14 publications

(8 citation statements)

References 48 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…Other studies provide evidence of the safe-haven properties of precious metals (Pierdzioch et al 2016 ; Bedoui et al 2020 ; Mensi et al 2020 ). This study uses the trade-weighted USD index (USDI; major currencies) as a proxy for the exchange rate (e.g., Hammoudeh et al 2015 ; Huang et al 2019 ).…”

Section: Methodsmentioning

confidence: 99%

“…12 In turn, this condition induces investors to pursue safe-haven assets (Hau and Rey 2006 ; Anderson et al 2007), particularly precious metals. Numerous studies have shown that the USD exchange rate and precious metal prices are negatively correlated (e.g., Sjaastad and Scacciavillani 1996 ; Capie et al 2005 ; Pukthuanthong and Roll 2011 ; Harris and Shen 2017 ; Huang et al 2019 ). Other studies provide evidence of the safe-haven properties of precious metals (Pierdzioch et al 2016 ; Bedoui et al 2020 ; Mensi et al 2020 ).…”

Section: Methodsmentioning

confidence: 99%

“…Agnello et al ( 2020 ), a recent empirical study, showed that an increase in interest rates would shorten commodity price booms and lengthen busts. 13 Following Thorbecke and Zhang ( 2009 ), Hammoudeh et al ( 2015 ), and Huang et al ( 2019 ), we use the Fed’s policy rate as a proxy for interest rate. Following Batten et al ( 2010 ), Karali and Power ( 2013 ), Frankel ( 2014 ); Gruber and Vigfusson ( 2013 ), Magrini and Donmez ( 2013 ), Mo et al ( 2018 ), among others, we also used the interest rate yield spread between the 10-year and 2-year US bonds "Treasury Constant Maturity Rate" to proxy for the slope of the yield curve.…”

Section: Methodsmentioning

confidence: 99%

“… 13 Additionally, Hammoudeh et al ( 2015 ) and Huang et al ( 2019 ) provided evidence that interest rate (measured by the Fed's policy rate) decreases raises the gold price. …”

mentioning

confidence: 99%

See 3 more Smart Citations

Can news-based economic sentiment predict bubbles in precious metal markets?

Maghyereh

Abdoh

2022

Financ Innov

View full text Add to dashboard Cite

This study examines the role of market sentiment in predicting the price bubbles of four strategic metal commodities (gold, silver, palladium, and platinum) from January 1985 to August 2020. It is the first to investigate this topic using sentiment indices, including news-based economic and consumer-based sentiments developed using different methods. We observed the role of sentiment as a reliable indicator of future bubbles for some metal commodities and found that bubbles were regularly concomitant with bearish sentiments for gold and platinum. Moreover, gold and palladium were the only commodities that experienced a bubble during the COVID-19 pandemic. Overall, our findings suggest inclusion of sentiment to the model that predicts the price bubbles of precious metals.

show abstract

Section: Methodsmentioning

confidence: 99%

Section: Methodsmentioning

confidence: 99%

Section: Methodsmentioning

confidence: 99%

“… 13 Additionally, Hammoudeh et al ( 2015 ) and Huang et al ( 2019 ) provided evidence that interest rate (measured by the Fed's policy rate) decreases raises the gold price. …”

mentioning

confidence: 99%

See 2 more Smart Citations

Can news-based economic sentiment predict bubbles in precious metal markets?

Maghyereh

Abdoh

2022

Financ Innov

View full text Add to dashboard Cite

show abstract

“…At present, most relevant studies are based on the time domain ( Huang et al, 2019 ; Rognone et al, 2020 ; Su et al, 2018 ), and the frequency domain relationship between media coverage and these three markets at diverse time scales has rarely been examined. However, the mutual effects of various investors change across time scales, and the relations between media coverage and financial markets are diverse at different frequency scales ( Umar & Gubareva, 2021 ).…”

Section: Introductionmentioning

confidence: 99%

Information spillover effects from media coverage to the crude oil, gold, and Bitcoin markets during the COVID-19 pandemic: Evidence from the time and frequency domains

Zhang

Hong

Guo

et al. 2022

International Review of Economics & Finance

View full text Add to dashboard Cite

Many scholars have explored the COVID-19 impact on the crude oil, gold, and Bitcoin markets, whereas most have ignored the media coverage influence. This paper focuses on examining information spillover from epidemic-related news to the crude oil, gold, and Bitcoin markets with the time-frequency analysis method. The empirical results reveal that both the return and volatility spillovers from epidemic-related news to the crude oil, gold, and Bitcoin markets are stronger in the short term (less than 1 week). In the long term, only the media sentiment index notably impacts crude oil, gold, and Bitcoin market returns. The volatility spillover from media coverage to crude oil mainly occurs in the short term. Regarding the gold and Bitcoin markets, the long-term volatility spillovers are significant. An obvious risk contagion path is found. Media hype is the main risk transmitter and transmits vast shocks to these three markets, especially the Bitcoin market, which subsequently transmits these shocks to the gold market. Risk accumulates systemically in the gold and Bitcoin markets. These findings have crucial empirical implications for policymakers and investors when formulating related short- or long-term decisions during the pandemic.

show abstract

Analyzing the difference evolution of provincial energy consumption in China using the functional data analysis method

You

Gong

2022

Energy Economics

View full text Add to dashboard Cite

The threshold effect of market sentiment and inflation expectations on gold price

Cited by 14 publications

References 48 publications

Can news-based economic sentiment predict bubbles in precious metal markets?

Can news-based economic sentiment predict bubbles in precious metal markets?

Information spillover effects from media coverage to the crude oil, gold, and Bitcoin markets during the COVID-19 pandemic: Evidence from the time and frequency domains

Analyzing the difference evolution of provincial energy consumption in China using the functional data analysis method

Contact Info

Product

Resources

About