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Gold as a hedge against oil shocks: Evidence from new datasets for oil shocks

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  • Salisu, Afees A.
  • Adediran, Idris

Abstract

This paper attempts to offer a careful and robust analysis of the hedging potential of gold against oil shocks. This objective is achieved by using the new datasets for oil shocks constructed by Baumeister and Hamilton (2019) and employing alternative techniques for robustness. The various empirical analyses rendered in this study do not seem to favour the use of gold as a hedge against oil shocks regardless of the nature of oil shock and empirical technique used.

Suggested Citation

  • Salisu, Afees A. & Adediran, Idris, 2020. "Gold as a hedge against oil shocks: Evidence from new datasets for oil shocks," Resources Policy, Elsevier, vol. 66(C).
    • Handle: RePEc:eee:jrpoli:v:66:y:2020:i:c:s0301420719309377
    DOI: 10.1016/j.resourpol.2020.101606
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    More about this item

    Keywords

    Hedging; Gold; Oil shocks; Disaggregated data; Structural breaks; Threshold effects;
    All these keywords.

    JEL classification:

    • E44 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Financial Markets and the Macroeconomy
    • G11 - Financial Economics - - General Financial Markets - - - Portfolio Choice; Investment Decisions
    • G15 - Financial Economics - - General Financial Markets - - - International Financial Markets

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