Role Of Gold Research Articles

Navigating crises: Gold's role as a safe haven for U.S. sectors

This paper investigates the correlation between U.S. sectors and gold, and whether gold can serve as a safe haven for investors in specific U.S. sectors during the global financial crisis, COVID-19, and the Russia-Ukraine war. We use data from the Standard & Poor's Depository Receipts (SPDR) Select Sector Exchange Traded Fund (ETF) to capture the performance of the respective sectors. Our findings document that gold is a weak safe haven for most U.S. sectors. Gold is not a safe investment for energy, materials, utilities, and consumer staples. Gold does provide vital protection for financial, consumer discretionary, industrial, technology, and healthcare.

The role of gold in terrorism: Risk aversion or financing source?

Based on the perspective of terrorism, this study uses a bootstrap full-sample causality test and sub-sample rolling window estimations to explore the risk aversion capability and terrorist financing capability of gold's time-varying dimension. The results suggest that terrorist incidents (defined by the number of terrorist attacks) and terrorist brutality (measured by the number of fatalities produced by terrorist attacks) are important factors in explaining changes in gold prices, but their effects differ. With extensive media coverage, the cause of investors' panic has changed from terrorist incidents to terrorist brutality. The results from some sub-sample periods support the capital asset pricing model by showing that terrorist attacks push up gold prices through a “terror premium.” Considering reverse causality, gold price can be used as an early warning of terrorist attacks, but its terrorist financing function is not yet proven. In the context of increasingly serious terrorism, studying the interaction mechanism between terrorist attacks and gold prices can help investors reasonably plan investments and provide insights for the government on combatting terrorism and maintaining world peace.

The Role of Gold - Silver Nanocomposite Gel versus Astragalus Polysaccharides on Healing Process of Experimentally Induced Wound in Albino Rats Pharmacological and Histological Comparative Study

The Role of Gold - Silver Nanocomposite Gel versus Astragalus Polysaccharides on Healing Process of Experimentally Induced Wound in Albino Rats Pharmacological and Histological Comparative Study

Dynamics of asymmetric multifractal cross-correlations between cryptocurrencies and global stock markets: Role of gold and portfolio implications

Understanding the risk transmission mechanism between cryptocurrencies and global stock markets is crucial for investors' risk management strategies. This study delves into this relationship, drawing on the Fractal Market Hypothesis and acknowledging the nonlinearity and asymmetry present in financial market correlations. We introduce a combined approach, integrating Multifractal Detrended Partial Cross-Correlation Analysis (MF-DPCCA) and Asymmetric Multifractal Cross-Correlation Analysis (MF-ACCA), resulting in the Asymmetric Multifractal Partial Cross-Correlation Analysis (MF-APCCA) method. By applying this method, we aim to uncover the dynamics between cryptocurrencies and global stock markets. We focus on stock indices from E7 and G7 countries and consider the Bitcoin market for our analysis. Our initial findings, using the MF-ACCA method, reveal pronounced asymmetric cross-correlations between cryptocurrencies and these stock markets. Notably, the correlation strength between Bitcoin and the G7 stock markets surpasses that of Bitcoin and the E7 markets. Further, when we account for and remove the influence of the common factor, gold, our analysis with the MF-APCCA method indicates an enhanced long-memory cross-correlation between Bitcoin and these stock markets. This cross-correlation tends to amplify during periods of positive returns but shows anti-persistence during negative returns. Remarkably, these asymmetries become more pronounced during significant market shifts. When comparing Bitcoin's relationship with the G7 and E7 indices, the latter displays heightened asymmetric risk correlations in both upward and downward market phases. In conclusion, gold, recognized as a safe-haven asset, can serve as a buffer, diminishing the portfolio risk between Bitcoin and the stock market. These empirical findings bear significant weight, urging investors to reassess the intricate relationship between stock and cryptocurrency markets. It also underscores the importance of well-informed cross-market portfolio investments and the need for regulatory vigilance to prevent systemic financial pitfalls.

The roles of gold, US dollar, and bitcoin as safe-haven assets in times of crisis

The roles of gold, US dollar, and bitcoin as safe-haven assets in times of crisis

The gold stock nexus: Assessing the causality dynamics based on advanced multiscale approaches

This paper relights the discourse surrounding the gold-stock nexus, delving into intrinsic cross-correlations and causalities through a trio of multiscale-based methodologies. Leveraging the adaptive characteristics of wavelet analysis, empirical mode decomposition, and swarm filtering, we construct bivariate bidirectional causality curves. Our analysis scrutinizes the dynamic lead-lag relationships by investigating intrinsic multiscale cross-correlations between gold-S&P 500 and gold-DJIA pairs. This comprehensive examination sheds light on the underlying mechanisms governing the gold and stock markets, especially during the turbulent 2020–2023 period, marked by the influence of the COVID-19 pandemic and the Russian war. The study also extends its purview to the relatively tranquil periods, encompassing over 15 years of daily observations in various sub-samples. Notably, our primary contribution lies in providing a profound analysis of the gold-stock nexus, utilizing advanced multiscale Granger causality estimators. Our findings from time-frequency cross-correlations reveal the presence of unidirectional and bidirectional causality, characterized by varying degrees of strength contingent on scales and pairs. The S&P 500 and DJIA indices emerge as leading indicators, reciprocally influencing gold prices, and vice versa. These initial outcomes are substantiated by results obtained through three Granger causality tests, affirming bidirectional causal relationships and highlighting the significance of heterogeneous interactions among the considered pairs. This study enhances our understanding of gold's role as a haven or hedge, especially during periods of financial turbulence, empowering market participants to formulate strategies founded on credible expectations. The incorporation of multiscale analyses, with their flexible properties, ensures a more comprehensive assessment, unveiling hidden information across time scales.

Is gold a hedge or a safe haven against stock markets? Evidence from conditional comoments

In this study, we estimate the conditional correlation and coskewness between gold and stock returns using a bivariate regime-switching model. Motivated by Yang, Zhou, and Wang (2010), we define gold as a strong hedge if the average correlation is negative and the coskewness is positive in the sample. Gold is a strong safe haven if these hold under market turmoil. We empirically examine the property of gold in 24 countries for a sample period spanning over 40 years and find that gold acts as a strong hedge and safe haven in Brazil, India, Indonesia, Italy, Mexico, Russia, South Korea, and Turkey. The interplay between cultural characteristics and the state of financial markets collectively defines gold's role in various countries. We construct a conditional comoment-based dynamic trading strategy and add gold to the stock portfolio when it can serve as a hedge or safe haven. Its out-of-sample performance dominates the buy-and-hold and correlation-based strategies, especially when we consider the safe haven property of gold.

Evolusi Uang Dalam Perspektif Sejarah dan Al-Qur'an: Analisis Berdasarkan Pemikiran Wahbah Zuhaili

Money has evolved significantly from prehistoric times to modern times, serving as the foundation of the human economy and way of life. Historical, Qur'anic and Wahbah Zuhaili perspectives will be examined in this discussion. Evolution took us from a simple barter system to the creation of precious and distinctive coins such as gold and silver. An important role in the economy is played by cash. Money serves as an effective measure of value and medium of exchange, making it easy to compare the prices of various goods and services. Value can be stored and accumulated over time thanks to its wealth storage function. In addition, money serves as a mechanism of exchange that makes ordinary business easier. The role of gold, silver, dinars and dirhams as tools of trade and as units of value is recognized in the Qur'anic perspective. This idea was translated into the contemporary economic context by Wahbah Zuhaili. However, the emergence of paper money and cryptocurrencies prompted new questions about the function of money in the modern era. This research highlights the development and importance of money in human civilization by integrating history, religion and economics. We can understand how money has influenced and still shapes the economy and human existence as a whole by examining the ideas of value, exchange, and the social significance of money. From prehistoric times to the present, money has undergone significant transformations.

Gold and CoVid-19: Uncovering the safe haven hypothesis with dynamic MSR modeling

During the catastrophic Covid-19 era, numerous assets experienced a decline in their original values, leaving the financial community grappling with the implications of the pandemic. A significant concern arising from this context is whether gold emerged as the ultimate safe haven during the pandemic and whether there were any shifts in investor behavior between the two waves of the pandemic. To address these concerns, we employed relevant analytical approaches, utilizing a dynamic Markov-Switching Regression (MSR) model. Our findings indicate that during both waves of Covid-19, gold exhibited characteristics of a safe haven asset against bonds, providing a hedge against economic turmoil. However, when it comes to stocks, gold's role slightly changed. It acted as a diversifier, offering a different pattern of returns compared to equities. This highlights gold's ability to adapt to evolving market characteristics.These results emphasize the importance of conducting further research on this topic to gain deeper insights into the factors influencing gold's behavior during periods of crisis. By expanding our understanding, we can refine risk management strategies and enhance portfolio performance in turbulent market conditions.

Gold's hedging and safe haven properties for European stock and bond markets

Most portfolio managers and risk managers strive to pick assets that lead to efficient financial risk mitigation; among them, gold stands out. This paper provides new insights into the role of gold as both a hedge and a safe haven towards European stock and sovereign bond markets. We base the analysis on evidence spanning the Euro's inception to the COVID-19 pandemic spread across Europe. To capture gold's hedge ability, we use the ADCC-GARCH and DCC-GARCH models, while for testing gold's safe haven property we use OLS regressions for different quantiles. Our results show that gold is a hedge for stocks, particularly after the Lehman Brothers collapse. Gold also shows strong safe haven properties for the most extreme negative returns (1% and 2.5% quantiles), and during specific events, such as the Lehman Brothers collapse, the Greek bailout and the Brexit Referendum. Still, for the COVID-19 pandemic outbreak, the results do not confirm this property. Conversely, for bonds, both hedge and safe haven effects are not strongly evident, with gold characterised, at best, as a weak hedge and safe haven. These findings have portfolio allocation implications for investors in European markets, namely fund and risk managers, by pointing out gold hedging and safe haven attributes.

Time and frequency domain connectedness and spillover among categorical and regional financial stress, gold and bitcoin market

Fragility of the financial system has been a matter of global concern. This study examines connectedness and spillovers among financial stress index (FSI) categories, regional FSI, gold, and Bitcoin. We employed time-varying and frequency domain approach of Chatziantoniou et al. (2021) using weekly data. We confirmed the interdependencies and connectedness of gold and Bitcoin with global categorical and regional financial stress. We find that credit FSI category is the largest transmitters in every model, implying that credit risk is an important driver of financial stress. United States is the largest stress contributor within the regional category. Additionally, connectedness among FSI categories, regional FSI, gold and Bitcoin has intensified during COVID-19 pandemic. In the short run, while gold and Bitcoin are net shocks receivers of categorical and regional financial stress, they are net shocks transmitters in the long run. Hence, gold and Bitcoin lost their safe-haven properties in the short-run but retained their values in the long-run. The findings expand understanding on the role of gold and Bitcoin for investors seeking protection from global financial stress.

Gold and the herd of Cryptos: Saving oil in blurry times

This paper assesses the effectiveness of a broad set of 1066 active and continuously traded cryptocurrencies as a safe haven instrument against extreme oil price movements, in comparison to the corresponding roles of gold. The uncertainty for the oil market during the COVID-19 pandemic and the subsequent Russia–Ukraine conflict set the tone for natural experiments for our study. We use a trail-blazing dynamic generalized autoregressive score model to estimate the tail riskiness of the potential safe haven assets from January 1, 2020, to September 30, 2022. By estimating the risk exposure of all cryptocurrency assets, we determine top ten safest assets for investment. Our results show the emergence of new safe haven cryptocurrencies, which have previously been ignored by the academic literature and policy makers alike. Intriguingly, our findings reveal that gold has been replaced by altcoins as the safest assets during both the COVID-19 pandemic and the Russia–Ukraine conflict. At this instance, our findings suggest that Bitcoin provides lengthier safe haven properties than gold for oil returns in both periods. However, the safe haven properties of gold and cryptocurrencies are time varying. Last but not least, we introduce a new Cryptocurrency Tail Risk Index (CTRI) that captures the risk exposure of cryptocurrency market, as a whole. Our results suggest that investment in numerous cryptocurrencies provides lengthier safe haven properties than investing in gold alone.

The Role of Gold Nanoparticles/Au-PEG-PAMAM as Drug Delivery System for Treatment of Breast Cancer

To enhance the cellular uptake and chemotherapeutic efficacy of a current chemotherapeutic medication, a nanoparticle drug carrier technology has been designed. Due to their distinctive electrical and optical characteristics, gold nanoparticles (Au NPs) have recently demonstrated intriguing medical and military uses. In the event that they come into touch with a biological system, little is known about their biocompatibility. Metallic nanoparticles have been successfully utilized for a kind of biological applications. A drug delivery system known as Au – PEG – PAMAM – DOX was produced by conjugating the dendrimer with the anti-cancer chemical doxorubicin (DOX) via an amide bond. The amount of DOX released from Au – PEG – PAMAM – DOX at a natural pH was negligible, but this amount significantly increased in an environment with a weak acidic milieu, according to studies on the release of medicines from acellular sources. A research into the intracellular release of the medication was carried out with the assistance of confocal laser scanning microscopy (CLSM). Recently conjugation to the nanosystem, in vitro viability experiments revealed an increase in the associated DOX cytotoxicity that could not be attributable to carrier components. This indicates that the effectiveness of the DOX was increased. In light of this, it has been hypothesized that the newly created pH-triggered multifunctional Au NPs- DOX nanoparticle system could pave the way for a viable platform for the intracellular delivery of a range of anticancer medicines. In the current study, the common Au NPs synthesis techniques and their well-established uses in diverse needs, particularly in biological sensing applications.

Green bonds and oil price shocks and uncertainty: A safe haven analysis

This paper investigates the hedge and safe-haven properties of green bonds (GBs) performing as a safeguard against oil price shocks and uncertainty, in comparison to the corresponding roles of gold, the 3-month European government bills and the U.S. 3-Month T. bills. Oil price shocks are disentangled into oil supply, oil demand, and oil risk shocks based on the recent methodology of Ready (2018) , generated in a framework that includes gold, oil shocks, and oil uncertainty (OVX). The ability of GBs to protect against oil price shocks and oil uncertainty is examined, using the GARCH and quantile regression (QR) models. The results show that GBs are more appropriate than gold and conventional bonds (CBs) as hedging and safe haven tools against oil price shocks and oil uncertainty. Besides, the ability of GBs to protect against oil price shocks and uncertainty depends on whether the oil shocks are supply, demand, or risk shocks. Furthermore, we find that GBs serve as a strong hedge and/or a safe haven against structural oil shocks generally under the bearish GBs market conditions. The European government bills and the US T. bills play the role of weak hedge and a safe haven asset against the oil uncertainty and the oil shocks. This role varies across quantiles (bear and bull market conditions). Relevant risk management implications are discussed.

Frequency dependence between oil futures and international stock markets and the role of gold, bonds, and uncertainty indices: Evidence from partial and multivariate wavelet approaches

This paper examines the frequency dynamic co-movements between crude oil prices and stock market returns of three developed economies (Canada, Japan, and the USA) and the emerging BRICS (Brazil, Russia, India, China, and South Africa) economies by considering four global factors (U.S. treasury bills, S&P volatility index, gold price, and U.S. EPU index). Using bivariate and multivariate wavelet approaches, the results show evidence of time-frequency co-movements between the considered markets at medium and low frequencies. Besides, the results reveal that the co-movement is intensified during global financial crisis and COVID-19 pandemic periods, confirming recoupling hypothesis. The risk analysis reveals dependence and persistence of co-movements, and aggravation of portfolio risk in the BRICS economies and across markets during bouts of afflictions. These findings should encourage the relevant national and transnational policy makers to consider these co-movements which vary over time and in duration when setting up regulations that deem to enhance the market efficiency.

The roles of gold and silver nanoparticles on ZnIn2S4/silver (gold)/tetra(4-carboxyphenyl)porphyrin iron(III) chloride hybrids in carbon dioxide photoreduction

The construction of hybrid catalysts composed of inorganic semiconductors and molecular catalysts shows great potential for achieving high photocatalytic carbon dioxide (CO2) conversion efficiency. In this study, ZnIn2S4 was first synthesized via a solvothermal route. Gold (Au) and silver (Ag) nanoparticles were then deposited on ZnIn2S4 via the reduction of noble metal precursor by sulfur vacancy defects. The obtained composite was further combined with tetra(4-carboxyphenyl)porphyrin iron(III) chloride (FeTCPP) molecular catalyst for efficient photocatalytic CO2 conversion. The roles of different noble metal nanoparticles in charge separation and interfacial electron transfer have been comprehensively studied. The photocatalytic performance and photoelectrochemical characterizations demonstrate that the introduction of Ag or Au nanoparticles is beneficial for charge separation. More importantly, the presence of Ag nanoparticles plays a crucial role in promoting the interfacial charge transfer between ZnIn2S4 and FeTCPP, whereas, Au nanoparticles function as active sites for the water reduction reaction.

The world monetary system: Specifics of the current stage of development and directions of evolution

Subject. The article investigates the world monetary system and specific aspects of the present stage of its development. Objectives. The purpose is to unveil features of the current stage of the world monetary system development and outline the main directions. Methods. The study draws on principles of historical, logical, and systems approaches, general scientific methods of analysis and synthesis, and comparative analysis. Results. The specifics of the modern world monetary system and directions of its evolution are determined by the specifics of the modern global economy. As alternative directions for further evolution of the world monetary system, we analyzed (1) the increased use of SDR, (2) strengthening the role of gold, (3) creation of a global currency issued by a specially established global central bank or the IMF, (4) the development of multicurrency, i.e. the use of US dollar, yuan, euro as world money. In the current foreign economic conditions, Russia's interests consist in non-inclusion of ruble in any of the emerging currency zones or, more precisely, zones of influence of euro, dollar, yuan. Conclusions. The findings may be used by public authorities, financial market participants, research-and-development, and educational organizations to analyze modern trends in the development of the world monetary system and the international financial market.

Can gold hedge against inflation in the UAE? A nonlinear ARDL analysis in the presence of structural breaks

Purpose The purpose of this study is to explore the role of gold as a hedge against inflation in the case of the United Arab Emirates. Design/methodology/approach The study utilizes monthly data on the local sharia-compliant spot gold contract traded on the Dubai Gold and Commodity Exchange (DGCX) and the corresponding consumer price index series over the period December 2015 to January 2021. The econometric approach employed by the study involves a unit root testing procedure that allows the timing of significant breaks to be estimated. A cointegration analysis is then conducted using a nonlinear autoregressive distributed lag (NARDL) model, taking into consideration the presence of structural breaks in addition to short- and long-run asymmetries. Findings The results reveal that consumer and gold prices are cointegrated, which implies that investing in gold can hedge against inflation in the long run. No sufficient evidence, nonetheless, is found in support of the ability of gold to serve as a hedge against inflation in the short run. Originality/value The findings have several important policy implications for policymakers and investors that are further discussed in the study.

Is gold a hedge or safe haven against oil and currency market movements? A revisit using multifractal approach.

We investigate gold’s role as a hedge or safe haven against oil price and currency movements across calm and extreme market conditions. For the empirical analysis, we extend the intraday multifractal correlation measure developed by Madani et al. (Bankers, Markets & Investors, 163:2–13, 2020) to consider the dependence for calm and extreme movement periods across different time scales. Interestingly, we employ the rolling window method to examine the time-varying dependence between gold-oil and gold-currency in terms of calm and turmoil market conditions. Based on high frequency (5-min intervals) across the period 2017–2019, our analysis shows three interesting findings. First, gold acts as a weak (strong) hedge for oil (currency) market movements, across all agent types. Second, gold has strong safe-haven capability against extreme currency movements, and against only short time scales of oil price movements. Third, hedging strategies confirm the scale-dependent gold's role in reducing portfolio risk as a hedge or safe haven. Implications for investors, financial institutions, and policymakers are discussed.

Heterogeneous Production and Enchained Consumption: Minoan Gold in a Changing World (ca. 2000 BCE)

Early and Middle Minoan goldwork has sparked numerous studies, with particular emphasis on possible foreign influences and the role of gold in the development of social hierarchies. This paper contends that the value and uses of gold can only be understood in connection to the broader organization of production and distribution. Through a biographical approach, we focus on the high-resolution study, including chemical and microscopic analyses, of 90 samples from gold assemblages found at Mochlos, Sissi, and Hagios Charalambos. Our results show that beneath the apparent simplicity in designs and techniques, there is a variety of technological choices and skill levels that are suggestive of the involvement of multiple hands. Our technical analyses reveal objects with long life histories of uses, reuses, and repairs, as well as instances of deliberate fragmentation through cutting, tearing, or separation of object parts. With complex life histories of shared production, curation, reuse, fragmentation, and recontextualization that did not conclude with burial, gold artifacts connected the dead and the living in a way that strengthened predominantly horizontal relationships. This evidence should therefore be considered in discussions of the emergence of social complexity. Our approach shows promise for studies of life histories of metalwork elsewhere.