The Impact of US Economic Indicators on the International Gold Market

Yue Wu ()
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Yue Wu: Xi’an Jiaotong-Liverpool University, P School of Mathematics and Physics

A chapter in Proceedings of the International Workshop on Navigating the Digital Business Frontier for Sustainable Financial Innovation (ICDEBA 2024), 2025, pp 733-740 from Springer

Abstract: Abstract This study considers the relationship between the U.S. economic indicators and gold price. The four indicators investigated in this research are nonfarm payroll employment, unemployment, consumer price index (CPI) and personal consumption expenditures (PCE). This study helps to fill the gap that how the U.S. economic indicators impact gold market, which are figures investors care about the most. In this study, relevance coefficients are used to evaluate the relevance of U.S. economic indicators and gold price in both short and long term. Choosing the difference between real value and expected value as independent variables, and spot gold price change as dependent variables. After importing the collected data into curve fitter, it helps to calculate results. The results show that CPI is strongly related to gold volatility in short periods. Nonfarm payrolls and unemployment are in medium relevance of gold and PCE is weakly related. In the long term, neither of the indicators could impact gold market. This study provides an important reference for gold investors to make the right decisions.

Keywords: Federal Reserve; Gold Market; U.S. Economic Indicators; Risk Management (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:spr:advbcp:978-94-6463-652-9_77

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DOI: 10.2991/978-94-6463-652-9_77

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