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The impact of COVID-19 news, panic and media coverage on the oil and gold prices: An ARDL approach

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  • Atri, Hanen
  • Kouki, Saoussen
  • Gallali, Mohamed imen

Abstract

This study investigates whether COVID-19 news, panic and media coverage affect oil and gold prices. Using the ARDL approach over the period January 23, 2020 to June 23, 2020, we find that COVID-19 deaths and panic have negative effects on crude oil price. However, the propaganda created by the media in the long term has a negative impact on oil price. The empirical results show that the COVID-19 new infections, deaths and media coverage have positive effects on the gold price. Our findings prove that oil price is sensitive to bad news unlike gold price. According to our study, gold, which is a hedge against economic and geopolitical crises, is additionally a safe haven during COVID-19 health crisis. Overall, our results also demonstrate that the economic and financial uncertainty affect oil and gold prices negatively during the COVID-19 pandemic. We conclude that the impact of the COVID-19 new infections on oil and gold prices is depending on whether the disease is an epidemic or a pandemic.

Suggested Citation

  • Atri, Hanen & Kouki, Saoussen & Gallali, Mohamed imen, 2021. "The impact of COVID-19 news, panic and media coverage on the oil and gold prices: An ARDL approach," Resources Policy, Elsevier, vol. 72(C).
    • Handle: RePEc:eee:jrpoli:v:72:y:2021:i:c:s0301420721000787
    DOI: 10.1016/j.resourpol.2021.102061
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    More about this item

    Keywords

    COVID-19 pandemic; Oil price; Gold price; Panic index; Media coverage; Economic uncertainty;
    All these keywords.

    JEL classification:

    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy
    • Q4 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy
    • G41 - Financial Economics - - Behavioral Finance - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making in Financial Markets
    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty

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