TY - JOUR
T1 - Domestic macroeconomic determinants of precious metals prices in developed and emerging economies: An international analysis of the long and short run
AU - Rana, Hafiz Muhammad Usman
AU - O'Connor, Fergal
PY - 2023/7/16
Y1 - 2023/7/16
N2 - This study examines the relationship between domestic macroeconomic factors and domestic precious metals prices across developed and emerging markets from 1979 to 2020. The statistical characteristics of the domestic variables are not found to be consistent across countries, so that these relationships cannot be modelled in one specific way. To model each metal domestically, we use various time series techniques as dictated by the combined characteristics of the domestic variables. The findings of this analysis reveal relationships that are not consistent across countries or precious metals. No consistent set of variables is found to exist that can explain either the short or the long run determinants of domestic precious metals prices, and there is no clear divide between developed or emerging markets. Any model of the determinants of a precious metal?s domestic price requires individual handling by the practitioners or academics undertaking it, rather than assuming a single set of determinants as is frequently done.
AB - This study examines the relationship between domestic macroeconomic factors and domestic precious metals prices across developed and emerging markets from 1979 to 2020. The statistical characteristics of the domestic variables are not found to be consistent across countries, so that these relationships cannot be modelled in one specific way. To model each metal domestically, we use various time series techniques as dictated by the combined characteristics of the domestic variables. The findings of this analysis reveal relationships that are not consistent across countries or precious metals. No consistent set of variables is found to exist that can explain either the short or the long run determinants of domestic precious metals prices, and there is no clear divide between developed or emerging markets. Any model of the determinants of a precious metal?s domestic price requires individual handling by the practitioners or academics undertaking it, rather than assuming a single set of determinants as is frequently done.
KW - Precious metals prices
KW - Long-run equilibrium
KW - Inflation
KW - Unemployment
KW - Emerging markets
UR - http://www.open-access.bcu.ac.uk/14639/
U2 - 10.1016/j.irfa.2023.102813
DO - 10.1016/j.irfa.2023.102813
M3 - Article
SN - 1057-5219
VL - 89
SP - 1
EP - 13
JO - International Review of Financial Analysis
JF - International Review of Financial Analysis
ER -