Safe Haven vs. Non-Safe Haven Assets An Analysis of Gold and Fuel Oil Futures During Pre and Post COVID Periods

The COVID-19 pandemic has triggered worldwide recessions, highlighting the significance of the performance of various asset classes during a crisis. This study examines the performance of gold and fuel oil futures pre- and post-pandemic. The research employs data from the CSMAR database (2019-2021) for trend analysis, correlation analysis, and volatility analysis utilizing Python. The results revealed that gold prices steadily rose while volatility decreased during the pandemic, illustrating the resilience of safe-haven assets. The price of fuel oil exhibited considerable fluctuation as energy usage declined, later rebounding with the economic recovery. During the outbreak, the correlation between gold and fuel oil decreased, showing the unique causes affecting each commodity. Research indicates that integrating safe-haven assets with industrial assets during a crisis enhances risk diversification; gold serves as a hedge against uncertainty, and fuel oil advantages from economic recovery. This study offers pragmatic suggestions for investors regarding asset allocation in turbulent markets.