Geopolitical risk and precious metals
2019
We empirically examine the impact of Geopolitical Risk (GPR) on
tradable precious metal returns for a period spanning over January
1985 to December 2017. We report the evidence of: (a) increase in GPR
of 100 units increases Gold returns by 0.0029 percent. (b) For a 100 unit
increase in GPR the returns of Silver, Platinum and Palladium falls by
-0.0008, -0.0057 and -0.0343 percent respectively. (c) Gold returns are
higher (and positive) under threat conditions rather than actual
occurrence of any risk events. (d) Palladium is found to be most
vulnerable to GPR and (e) we also find positive and significant
sensitivity of Gold at normal market conditions.
Keywords:
- Correction
- Source
- Cite
- Save
- Machine Reading By IdeaReader
0
References
7
Citations
NaN
KQI