The Dollar and Gold: Which is the Safest Haven? COVID-19 Evidence
This paper examines the dynamic correlation between the US dollar and gold prices during the coronavirus pandemic to determine which of the two assets is a safer haven from an investor’s perspective. The research utilises methods of analysis and synthesis of theoretical knowledge from published arti...
| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
| Published: |
Sciendo
2023-01-01
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| Series: | Economics and Business |
| Subjects: | |
| Online Access: | https://doi.org/10.2478/eb-2023-0007 |
| _version_ | 1797375968844709888 |
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| author | Bousbia Salah Rahima Beggat Hanane Debbar Abdelkerim |
| author_facet | Bousbia Salah Rahima Beggat Hanane Debbar Abdelkerim |
| author_sort | Bousbia Salah Rahima |
| collection | DOAJ |
| description | This paper examines the dynamic correlation between the US dollar and gold prices during the coronavirus pandemic to determine which of the two assets is a safer haven from an investor’s perspective. The research utilises methods of analysis and synthesis of theoretical knowledge from published articles, literature, and official statistics websites. Data covering the period from January 1, 2020 to May 26, 2021, were primarily collected from the latest versions of these websites. The study includes a quantitative analysis of variables, including the Johansen cointegration test, the Granger causality test, and the error correction model. Our empirical analysis reveals a long-term equilibrium relationship between the US dollar and gold price. There is a oneway inverse causality relationship between the dollar and gold price. The results indicate that gold can be considered the safest haven from the investors’ perspective. |
| first_indexed | 2024-03-08T19:31:54Z |
| format | Article |
| id | doaj.art-e4b200d6ac1242bdbeb04c7c42e2216b |
| institution | Directory Open Access Journal |
| issn | 2256-0394 |
| language | English |
| last_indexed | 2024-03-08T19:31:54Z |
| publishDate | 2023-01-01 |
| publisher | Sciendo |
| record_format | Article |
| series | Economics and Business |
| spelling | doaj.art-e4b200d6ac1242bdbeb04c7c42e2216b2023-12-26T07:42:03ZengSciendoEconomics and Business2256-03942023-01-0137110411810.2478/eb-2023-0007The Dollar and Gold: Which is the Safest Haven? COVID-19 EvidenceBousbia Salah Rahima0Beggat Hanane1Debbar Abdelkerim2University of ElOued, ElOued, AlgeriaUniversity of ElOued, ElOued, AlgeriaUniversity of ElOued, ElOued, AlgeriaThis paper examines the dynamic correlation between the US dollar and gold prices during the coronavirus pandemic to determine which of the two assets is a safer haven from an investor’s perspective. The research utilises methods of analysis and synthesis of theoretical knowledge from published articles, literature, and official statistics websites. Data covering the period from January 1, 2020 to May 26, 2021, were primarily collected from the latest versions of these websites. The study includes a quantitative analysis of variables, including the Johansen cointegration test, the Granger causality test, and the error correction model. Our empirical analysis reveals a long-term equilibrium relationship between the US dollar and gold price. There is a oneway inverse causality relationship between the dollar and gold price. The results indicate that gold can be considered the safest haven from the investors’ perspective.https://doi.org/10.2478/eb-2023-0007dollar exchange rateeconomic crisisfinancial crisisgold pricehedgesafe havenf31g01g10g11g14g15 |
| spellingShingle | Bousbia Salah Rahima Beggat Hanane Debbar Abdelkerim The Dollar and Gold: Which is the Safest Haven? COVID-19 Evidence Economics and Business dollar exchange rate economic crisis financial crisis gold price hedge safe haven f31 g01 g10 g11 g14 g15 |
| title | The Dollar and Gold: Which is the Safest Haven? COVID-19 Evidence |
| title_full | The Dollar and Gold: Which is the Safest Haven? COVID-19 Evidence |
| title_fullStr | The Dollar and Gold: Which is the Safest Haven? COVID-19 Evidence |
| title_full_unstemmed | The Dollar and Gold: Which is the Safest Haven? COVID-19 Evidence |
| title_short | The Dollar and Gold: Which is the Safest Haven? COVID-19 Evidence |
| title_sort | dollar and gold which is the safest haven covid 19 evidence |
| topic | dollar exchange rate economic crisis financial crisis gold price hedge safe haven f31 g01 g10 g11 g14 g15 |
| url | https://doi.org/10.2478/eb-2023-0007 |
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