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The Effects of Economic News on Commodity Prices; Is Gold Just Another Commodity?


  • Shaun K. Roache
  • Marco Rossi


The paper uses an event study methodology to investigate which and how macroeconomic announcements affect commodity prices. Results show that gold is unique among commodities, with prices reacting to specific scheduled announcements in the United States and the Euro area (such as indicators of activity or interest rate decisions) in a manner consistent with gold's traditional role as a safe-haven and store of value. Other commodity prices, where such news is significant, exhibit pro-cyclical sensitivities and these have risen somewhat as commodities have become increasingly financialized. These results are important for those trading in the commodity markets on a frequent basis and long-term market participants that take their decisions based on information on price fundamentals, which are reflected in the release of macroeconomic announcements.

Suggested Citation

  • Shaun K. Roache & Marco Rossi, 2009. "The Effects of Economic News on Commodity Prices; Is Gold Just Another Commodity?," IMF Working Papers 09/140, International Monetary Fund.
  • Handle: RePEc:imf:imfwpa:09/140

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    References listed on IDEAS

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    Cited by:

    1. repec:wly:ijfiec:v:22:y:2017:i:1:p:68-80 is not listed on IDEAS
    2. Natalia María Acevedo Prins & Luis Miguel Jiménez Gómez & Miguel David Rojas López, 2014. "Efecto de las variables macroeconómicas globales y locales sobre el comportamiento de los futuros de la TRM en Colombia," ESCENARIOS: EMPRESAS Y TERRITORIO, INSTITUCION UNIVERSITARIA ESUMER, January.
    3. repec:eee:eneeco:v:68:y:2017:i:c:p:313-326 is not listed on IDEAS
    4. repec:wsi:jicepx:v:04:y:2013:i:01:n:s1793993313500063 is not listed on IDEAS
    5. Guglielmo Maria Caporale & Fabio Spagnolo & Nicola Spagnolo, 2017. "Macro News and Commodity Returns," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 22(1), pages 68-80, January.
    6. Bredin, Don & Conlon, Thomas & Potì, Valerio, 2015. "Does gold glitter in the long-run? Gold as a hedge and safe haven across time and investment horizon," International Review of Financial Analysis, Elsevier, vol. 41(C), pages 320-328.
    7. Castillo, Carlos, 2014. "Inflation targeting and exchange rate volatility smoothing: A two-target, two-instrument approach," Economic Modelling, Elsevier, vol. 43(C), pages 330-345.


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