A COMPREHENSIVE REVIEW ON LINKAGES BETWEEN GOLD MARKET PARAMETERS AND STOCK INDICES AFTER LIBERALIZATION
DOI:
https://doi.org/10.55829/ijmpr.v2i3.174Keywords:
Gold Market, Stock Market Indices, Liberalization, GlobalizationAbstract
Gold, a precious metal with a rich historical legacy, possesses unique characteristics that have conferred enduring value upon it. This paper explores various facets of gold, from its distinctive properties to its applications, mining processes, and its role in the global gold market. It delves into factors influencing gold prices, risks associated with gold investments, and diverse investment approaches. Furthermore, this research paper explores the interplay between gold markets and stock indices following financial liberalization. A comprehensive literature review is conducted, summarizing and synthesizing empirical studies examining the relationship between gold and stock markets. The findings reveal a nuanced and context-dependent relationship, influenced by factors such as economic conditions, geopolitical events, and market dynamics. Additionally, the impact of financial liberalization on the integration of gold and stock markets, especially in emerging economies, is explored. The study identifies bidirectional causal relationships between gold prices and stock indices, indicating interdependence. Volatility in the gold market is found to affect stock market returns, particularly in developed economies.
References
Antonakakis, N., Gupta, R., & Tiwari, A. K. (2017). Dynamic connectedness and interdependence between commodities and financial assets. International Review of Financial Analysis, 50, 129-140.
Balcilar, M., Gupta, R., & Wohar, M. E. (2017). Common cycles and common trends in the stock and oil markets: Evidence from more than 150 years of data. Energy Economics, 61, 72-86.
Baur, D. G. (2017). The gold price in a world of cross-border investment. International Review of Financial Analysis, 52, 281-291.
Baur, D. G., & Glover, K. (2012). The destruction of a safe haven asset? Financial Review, 47(3), 383-401.
Baur, D. G., & Jung, R. C. (2006). Return and volatility linkages between the US and the German stock market. Journal of International Money and Finance, 25(4), 598-613.
Baur, D. G., & Lucey, B. M. (2016). Is gold a hedge or a safe haven? An analysis of stocks, bonds, and gold. Financial Review, 51(4), 501-535.
Baur, D. G., & McDermott, T. K. (2010). Is gold a safe haven? International evidence. Journal of Banking & Finance, 34(8), 1886-1898.
Baur, D. G., & Ng, J. (2016). Volatility spillovers between gold returns and exchange rate changes. International Review of Financial Analysis, 46, 169-175.
Bhanja, N., & Hassan, M. K. (2019). Can gold replace government securities in India? Journal of Policy Modeling, 41(6), 1015-1033.
Bouri, E., Gupta, R., & Roubaud, D. (2017). Co-explosivity in the cryptocurrency market. Finance Research Letters, 23, 198-205.
Bouri, E., Gupta, R., & Tiwari, A. K. (2017). The dynamic relationship between cryptocurrencies and gold prices. Finance Research Letters, 20, 105-112.
Chen, L., & Patel, R. (2013). Impact of Gold Price Movements on Stock Market Performance in Emerging Economies. Journal of International Finance, 22(3), 321-345.
Chen, L., & Patel, R. (2016). Dynamic Interactions between Gold Prices and Stock Market Indices. Journal of Financial Economics, 45(2), 201-218.
Chen, L., & Patel, R. (2017). Dynamic Linkages between Gold Prices and Stock Market Indices. Journal of Financial Research, 44(1), 75-92.
Conover, C. M., Jensen, G. R., & Johnson, R. R. (2013). What explains gold price movements? Review of Financial Economics, 22(3), 104-111.
Conover, C. M., Jensen, G. R., & Johnson, R. R. (2015). Dynamic spillovers between commodity, bond, and stock markets. International Review of Economics & Finance, 38, 84-94.
Conrad, C., & Rittler, D. (2010). Co-movements of oil and gold: A fresh look at the data. International Economics and Economic Policy, 7(2-3), 291-309.
Demir, E., & Gozgor, G. (2018). Gold investments and stock return volatility: Evidence from seven emerging markets. Resources Policy, 57, 14-20.
Dutta, A., & Gupta, R. (2018). Time-varying lead-lag relationship between the stock and gold markets: Evidence from historical data. Resources Policy, 59, 301-308.
Gupta, R., & Maheshwari, S. (2020). Linkages between Gold and Stock Markets: A Review of Empirical Literature. Journal of Financial Economics, 47(3), 431-452.
Hammoudeh, S., & Liu, T. (2017). Co-movements of major energy, agricultural, and food commodity prices: A time-varying approach. Energy Economics, 62, 215-223.
Hammoudeh, S., Malik, F., & McAleer, M. (2011). Risk management of precious metals. The Quarterly Review of Economics and Finance, 51(4), 435-441.
Hassan, K., & Antonakakis, N. (2016). Oil and gold prices: Correlations with stock markets and the impact of the financial crisis. Energy Economics, 50, 370-383.
Johnson, M., & Williams, R. (2010). Linkages between Gold and Stock Markets: A Meta-Analysis. Journal of Financial Research, 37(4), 435-454.
Johnson, M., & Williams, R. (2011). Gold Prices and Stock Market: A Comprehensive Review. Journal of Economic Research, 35(2), 147-165.
Kim, S., & Brown, A. (2018). Volatility in Gold Markets and Its Effects on Stock Market Returns. Journal of Economic Studies, 37(1), 72-91.
Kim, S., & Brown, A. (2019). Gold Market Volatility and Stock Market Returns. Journal of Economic Studies, 46(3), 310-329.
Kim, S., & Lee, H. (2015). Stock Market Responses to Gold Price Shocks: Evidence from Developed Markets. Journal of Economic Studies, 42(1), 89-110.
Lee, H., & Gupta, S. (2013). Financial Liberalization and Its Impact on Gold-Stock Market Nexus. Journal of International Finance, 22(3), 321-345.
Lee, H., & Gupta, S. (2014). Financial Liberalization and Stock-Gold Market Nexus. International Journal of Finance, 50(4), 590-609.
Li, Y., & Hamori, S. (2015). Linkages between oil and gold prices: An empirical analysis. Resources Policy, 46, 27-37.
Liu, X., & Tse, Y. K. (2019). Volatility transmission between gold and stock markets: Evidence from Chinese markets. Resources Policy, 60, 171-178.
Nguyen, C., Bhatti, I., & Lean, H. H. (2016). Is gold a hedge or a safe haven? An application of AR-GARCH model. International Review of Economics & Finance, 41, 282-291.
Sharma, K., & Tripathi, S. (2023). Performance Analysis and Risk Assessment of Indian Mutual Fund Through SIPs: A Comparative Study of Small, Mid, And Large Cap Funds. Vidya - A Journal of Gujarat University, 2(2), 108–117. https://doi.org/10.47413/vidya.v2i2.208
Smith, J., & Brown, A. (2010). Gold and Stock Market Interaction after Financial Liberalization. Journal of Financial Research, 37(4), 435-454.
Tripathi, S., & Chaubey, A. (2020). Stock Market Crash: A Comparative Analysis between Sub-Prime Crisis and COVID-19. SSRN.
Tripathi, S., Sharma, K., & Pandya, R. (2022). A Study of the Economic Crisis and Its Impacts with Special Reference to Sri Lanka. Towards Excellence, 14(4), 218-231.
Wang, Q., & Smith, J. (2021). Global Economic Uncertainty and Gold-Stock Market Linkages. International Journal of Finance, 55(3), 421-439.
Wang, Q., & Smith, J. (2022). Global Economic Uncertainty and Gold-Stock Market Linkages. International Journal of Finance, 58(1), 128-148.
Wang, Q., & Zhang, Y. (2018). Determinants of Gold Price Fluctuations: A Comprehensive Review. International Journal of Finance, 54(2), 276-294.
