Logo
Munich Personal RePEc Archive

Oil and gold: correlation or causation?

Le, Thai-Ha and Chang, Youngho (2011): Oil and gold: correlation or causation?

[thumbnail of MPRA_paper_31795.pdf]
Preview
PDF
MPRA_paper_31795.pdf

Download (328kB) | Preview

Abstract

This study using the monthly data spanning 1986:01-2011:04 to investigate the relationship between the prices of two strategic commodities: gold and oil. We examine this relationship through the inflation channel and their interaction with the index of the US dollar. We used different oil price proxies for our investigation and found that the impact of oil price on the gold price is not asymmetric but non-linear. Further, results show that there is a long-run relationship existing between the prices of oil and gold. The findings imply that the oil price can be used to predict the gold price.

Atom RSS 1.0 RSS 2.0

Contact us: mpra@ub.uni-muenchen.de

This repository has been built using EPrints software.

MPRA is a RePEc service hosted by Logo of the University Library LMU Munich.