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The role of macroeconomic and geopolitical news on gold returns and volatility

  • University of Derby
  • King Abdulaziz University

Research output: Contribution to journalArticlepeer-review

Abstract

The goal of this paper is to explore the simultaneous role of macroeconomic and geopolitical news in gold returns and its associated volatility. The analysis uses sentiment scores for certain macroeconomic and geopolitical global news, along with a GARCH modelling approach. The findings document that both types of news substantially impact gold returns and their associated volatility, with geopolitical news having a stronger impact.

Original languageEnglish
Pages (from-to)72-80
Number of pages9
JournalEconomics and Business Letters
Volume10
Issue number1
DOIs
StatePublished - 2021
Externally publishedYes

Keywords

  • GARCHX model
  • Geopolitical news
  • Gold returns
  • Macroeconomic news

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