How COVID-19 influences prices of oil and precious metals: Comparison between data extracted from online searching trends and actual events

Su Yuandong, Asadullah Khaskheli, Syed Raza and Sara Qamar Yousufi

Resources Policy, 2022, vol. 78, issue C

Abstract: The investigation explores whether COVID-19 influences oil and precious metals prices by comparing data extracted from online searching trends and actual events. The study utilizes the Linear Granger causality test & non-parametric causality-in-quantiles method and uses data from January (2020) to March (2021). We have incorporated four mostly trading metals (i.e., Gold, Palladium, Silver, & Platinum) & Crude oil. Although outcomes of Linear Granger causality test show no causal relation between COVID-19 & oil and precious metal prices for both cases (i.e., online searching trends and actual events), the outcomes of the non-parametric test revealed the existence of non-linear association among constructs. Non-parametric test results revealed that COVID-19 significantly influences the prices of oil and precious metals. Therefore, we conclude that policymakers need to contemplate pandemic risk as most critical risk factor for stability of market when developing policies for the market and economy. Furthermore, through this study, investors and policymakers will get noteworthy awareness for thinking out of the box during the crisis.

Keywords: COVID-19; Online searching trends; Actual events; Precious metals; Crude oil; Non-parametric causality-in-quantiles. (search for similar items in EconPapers)
Date: 2022
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Citations: View citations in EconPapers (12)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jrpoli:v:78:y:2022:i:c:s0301420722003609

DOI: 10.1016/j.resourpol.2022.102916

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