The relationship between gold price and the American financial market

Wajdi Moussa, Nidhal Mgadmi, Rym Regaieg and Azza Bejaoui

International Journal of Finance & Economics, 2021, vol. 26, issue 4, 6149-6155

Abstract: In this paper, we examine the effect of the gold price on the American financial market. In particular, we analyse the impact of gold price on dollar exchange rate and returns of the American banks. Methodologically, we use a unified approach based on multi‐models not only to examine the gold price and U.S. market nexus but also to highlight the dynamics of such relationship over the period December 19, 1994–June 30, 2017. We show that a long‐relationship between gold price, dollar exchange rate and U.S. bank returns is well documented. As well, the behaviour and dynamics of such relationship are characterized by some salient features. In particular, the nonlinear adjustment of gold price against the U.S. financial market is well documented, implying that gold price plays a substantial role in creating a pressure on the dollar exchange rate and U.S. banks returns. Such findings could provide interesting insights for policymakers and investors.

Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://doi.org/10.1002/ijfe.2113

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:wly:ijfiec:v:26:y:2021:i:4:p:6149-6155

Ordering information: This journal article can be ordered from
http://jws-edcv.wile ... PRINT_ISSN=1076-9307

Access Statistics for this article

International Journal of Finance & Economics is currently edited by Mark P. Taylor, Keith Cuthbertson and Michael P. Dooley

More articles in International Journal of Finance & Economics from John Wiley & Sons, Ltd.
Bibliographic data for series maintained by Wiley Content Delivery ().