Can precious metals hedge the risks of Sino–US political relation?–Evidence from Toda–Yamamoto causality test in quantiles

Yifei Cai, Hao-Wen Chang, Feiyun Xiang and Tsangyao Chang

Finance Research Letters, 2023, vol. 58, issue PA

Abstract: By using a novel Granger causality test in quantiles, this study first confirms the hedging role of precious metals (i.e., gold, platinum and silver) to Sino-US political relation risks. The causality is found to be quantile-varied. Important policy implications are provided to investors, arbitrageurs, and funding managers.

Keywords: Precious metals; US–China political relation; Granger causality test; Quantiles (search for similar items in EconPapers)
JEL-codes: C32 D74 G1 (search for similar items in EconPapers)
Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:58:y:2023:i:pa:s1544612323006992

DOI: 10.1016/j.frl.2023.104327

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