Reflections of Economic Shocks and Price of Crude Oil on Gold Price Volatility within Asian Nations

The focus of this study is to examine the effects of economic shocks along with the crude oil price on gold prices in Asian countries. This study utilizes a regression analysis to measure the relationship between the macroeconomic indicators, crude oil price, and gold price in six selected nations from 1990 until 2022. The validity of the data was diagnostically checked by performing a VIF procedure, autocorrelation test, and normality test on residual, and data were analyzed via EViews software. The analysis showed mixed findings, however, a major variable that positively affects the fluctuation of the gold price is “the crude oil price” and it reflects global economic stability in the six countries. A sudden rise in crude oil prices might trigger conflicts in oil-exporting countries and limit access to material sources. This situation may force investors to move their funds into a safe-haven commodity like gold. The fluctuations in crude oil prices are not only a response to current market conditions but also alarming a lot more fundamental problems in an economy, which include approaching economic recessions, currency devaluation and a major financial crisis. For practical implications, this study suggests that policymakers pay extra attention to this commodity besides other economic indicators like inflation, interest and currency rates, and a GDP rate to ensure a sustainable economic condition. To the best of the authors’ knowledge, this study is the first that examines the economic shocks along with crude oil prices pre-and-post COVID-19 pandemic focusing on a few Asian countries.

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Publication Details

Journal
Information Management and Business Review
Published
2024-10-27
DOI
https://doi.org/10.22610/imbr.v16i3s(i)a.4169
Citations
1
Primary Topic
Market Dynamics and Volatility
Type
article
Field-Weighted Citation Impact
1.13
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article

Reflections of Economic Shocks and Price of Crude Oil on Gold Price Volatility within Asian Nations

Nurtasbiyah Yusof, Zetty Zahureen Mohd Yusoff, Ani Suryani, Nurul Aida Azman et al.
1 citations
Information Management and Business Review
Market Dynamics and Volatility
1.13
article

Reflections of Economic Shocks and Price of Crude Oil on Gold Price Volatility within Asian Nations

Nurtasbiyah Yusof, Zetty Zahureen Mohd Yusoff, Ani Suryani, Nurul Aida Azman, Nur Milia Atirah Masarudin, Nurli Qawiemah Selamat, Nurul Aqilah Husna Rizal Yusri
article en
1 citations

Abstract

The focus of this study is to examine the effects of economic shocks along with the crude oil price on gold prices in Asian countries. This study utilizes a regression analysis to measure the relationship between the macroeconomic indicators, crude oil price, and gold price in six selected nations from 1990 until 2022. The validity of the data was diagnostically checked by performing a VIF procedure, autocorrelation test, and normality test on residual, and data were analyzed via EViews software. The analysis showed mixed findings, however, a major variable that positively affects the fluctuation of the gold price is “the crude oil price” and it reflects global economic stability in the six countries. A sudden rise in crude oil prices might trigger conflicts in oil-exporting countries and limit access to material sources. This situation may force investors to move their funds into a safe-haven commodity like gold. The fluctuations in crude oil prices are not only a response to current market conditions but also alarming a lot more fundamental problems in an economy, which include approaching economic recessions, currency devaluation and a major financial crisis. For practical implications, this study suggests that policymakers pay extra attention to this commodity besides other economic indicators like inflation, interest and currency rates, and a GDP rate to ensure a sustainable economic condition. To the best of the authors’ knowledge, this study is the first that examines the economic shocks along with crude oil prices pre-and-post COVID-19 pandemic focusing on a few Asian countries.

Information Management and Business ReviewVol. 16(3S(I)a)
State University of Malang (ID), Universiti Teknologi MARA (MY)
Decent work and economic growth
Openalex Percentile: Top 11%
Market Dynamics and Volatility
1.13
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