The Role Of Gold As A Safe Haven Asset During Financial Crises: Evidence From The Covid-19 Pandemic & The 2008 Global Financial Crises

Financial crises, characterized by severe disruptions in economic stability, have historically prompted investors to seek refuge in assets that can preserve value amidst market turmoil. Gold, with its long-standing reputation as a store of value, has often been regarded as a "safe haven" asset—an investment that retains or increases in value during periods of financial instability (Baur & Lucey, 2010). Two major occurrences that tested the resilience of global financial systems were the 2008 Global Financial Crisis and the COVID-19 pandemic. These events triggered a significant drop in stock markets, fluctuations in crude oil prices, and volatility in exchange rates. During these crises, Scholars, investors, and policymakers all paid close attention to gold’s performance, raising questions on its dependability as a hedge against uncertainty.