Casting shadows on natural resource commodity markets: Unraveling the quantile dilemma of gold and crude oil prices

Muhammad Luqman, Adil Mugheri, Najid Ahmad and Ugur Soytas

Resources Policy, 2023, vol. 86, issue PA

Abstract: In this era of globalization and technology, the natural resource commodity futures market holds exceptional significance. Our study endeavors to address the research gap by meticulously investigating the asymmetric relationship between precious metals and energy market prices, spanning from January 2000 to August 2023. We employ a quantile autoregressive distributive lag model to simultaneously evaluate all market conditions while accounting for the asymmetric properties. Results, first, uncover both short-term and long-term associations among various commodities. Notably, we identify significant links between natural gas and gasoline, as well as between gold, silver, platinum, and crude oil. Second, our analysis highlights the asymmetric nature of these relationships, demonstrating that market conditions can exert diverse impacts on the interactions between precious metals and energy commodities. This nuanced understanding is invaluable for making informed decisions in these markets. Third our research offers substantial economic implications for stakeholders such as policymakers, investors, and portfolio managers. A deeper comprehension of the intricate interdependencies between precious metals and energy resources can guide more astute decision-making, potentially leading to enhanced investment strategies and policy adjustments.

Keywords: Precious metals; Crude oil; Natural gas; Gasoline (search for similar items in EconPapers)
JEL-codes: F65 G10 G15 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jrpoli:v:86:y:2023:i:pa:s0301420723009807

DOI: 10.1016/j.resourpol.2023.104269

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