Oil price volatility and gold prices volatility asymmetric links with natural resources via financial market fluctuations: Implications for green recovery

Yang Li and Qingfeng Du

Resources Policy, 2024, vol. 88, issue C

Abstract: The impact of financial market volatility on the correlation between oil and gold prices is explored here to implicate the green recovery future. Our research aims to aid oil and gold market analysts, financiers, policymakers, and risk managers in making informed decisions. To do this, with a particular emphasis on the Chinese context, we use rigorous econometric methods to examine historical data from a chosen period. Our research reveals a critical relationship between oil price volatility and gold price volatility, where noticeable effects of volatility fluctuations on gold price volatility may be seen. Our research also reveals that these impacts are not always equal and may change depending on the state of the market, highlighting the need to consider the larger economic context when evaluating these commodities. The data shows that gold and oil prices are very volatile, as are the markets as a whole. The analysis found that the gold and oil markets are both very unpredictable. This result makes it abundantly evident that the connection between the stock and commodities markets is crucial to the selection method. The analysis found that the gold and oil markets are both very unpredictable. We may get a deeper comprehension of the connection and draw more applicable conclusions if we factor in the volatility of financial markets. Policymakers may include variations in oil price volatility in their decision-making on commodities markets and financial stability, and market analysts can improve their forecasting models.

Keywords: Oil price volatility; Gold prices; Financial market volatility; Natural resources; Green recovery; green energy (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:eee:jrpoli:v:88:y:2024:i:c:s030142072300990x

DOI: 10.1016/j.resourpol.2023.104279

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