Original scientific paper
https://doi.org/10.1080/1331677X.2023.2183229
Does global supply chain pressure motivate the gold market?
Meng Qin
Chi-Wei Su
Oana-Ramona Lobonţ
Nicoleta-Claudia Moldovan
Abstract
Analyzing the gold market through a new perspective is crucial to
forming a rational investment arrangement. This investigation utilizes
the bootstrap full- and sub-sample techniques to probe the correlation
between global supply chain pressure (GSCP) and the gold
price (GP), further evidence of whether global supply chain pressure
could motivate the gold market. The conclusions suggest that GSCP
has positive and negative effects on GP. The positive influences indicate
that intensifying GSCP might raise the safe-haven demand for
gold to avert potential risks and uncertainties, underlining that global
supply chain pressure could motivate the gold market, whereas low
GSCP may decrease this incentive. However, the negative effect
could not support the above opinion, which points out that the
appreciation of U.S. dollars might weaken the hedging ability of
gold. Conversely, GP negatively impacts GSCP, meaning that the
gold bull market may stabilize the global supply chain, especially
during economic crises. Against the aggravated Russia-Ukraine war
and the severe global supply chain crisis, practical implications for
consumers, investors, enterprises, and related economies could be
put forward according to the above conclusions.
Keywords
Gold market; global supply chain pressure; causal relation; time-varying
Hrčak ID:
314043
URI
Publication date:
15.5.2023.
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