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Does happy Twitter forecast gold price?

Vighneswara Swamy and M.A. Lagesh
Authors registered in the RePEc Author Service: Lagesh Meethale Aravalath

Resources Policy, 2023, vol. 81, issue C

Abstract: This study explores the relationship between Twitter happiness and gold price in the US using wavelet analysis covering daily data from September 2008 to April 2019. We test our main hypothesis that investor attention from Twitter as a news and social medium has a nexus with the gold price. The results suggest that (i) Twitter happiness and gold price exhibit a strong correlation in both time and frequency domains; (ii) Twitter happiness leads the gold price suggesting the direction of causality from Twitter sentiment to gold price; (iii) in the post-crisis period, the gold price has experienced a stable rise and the Twitter sentiment is letting the gold price. Thus, we indicate that Twitter's mood can forecast the gold price. Our findings imply that investors can take a cue from Twitter sentiment in strategizing their gold investment decisions.

Keywords: Twitter; Sentiment; Gold price; Wavelet analysis; Causality (search for similar items in EconPapers)
JEL-codes: C22 C53 Q02 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jrpoli:v:81:y:2023:i:c:s0301420723000077

DOI: 10.1016/j.resourpol.2023.103299

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