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Will Gold Always Shine amid World Uncertainty?

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  • Chi-Wei Su
  • Lidong Pang
  • Muhammad Umar
  • Oana-Ramona Lobonţ

Abstract

This article investigates whether gold will always shine amid world uncertainty or not. The quantile on quantile (QQ) approach is employed to detect the mutual relationship between the world uncertainty index (WUI) and gold price (GP). We find the impacts of WUI on GP, in different quantiles, varies and runs in cycles. The positive influence that ripples from WUI toward GP indicates that gold will shine over economic or political chaos periods. However, this viewpoint cannot be recognized when considering the negative impacts of the WUI on GP. Also, by evaluating the compound influence from GP to WUI, we suggest that the gold market acts as a barometer of global risk according to the market states.

Suggested Citation

  • Chi-Wei Su & Lidong Pang & Muhammad Umar & Oana-Ramona Lobonţ, 2022. "Will Gold Always Shine amid World Uncertainty?," Emerging Markets Finance and Trade, Taylor & Francis Journals, vol. 58(12), pages 3425-3438, September.
    • Handle: RePEc:mes:emfitr:v:58:y:2022:i:12:p:3425-3438
    DOI: 10.1080/1540496X.2022.2050462
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