Skip to main content
Article thumbnail
Location of Repository

Oil and gold: correlation or causation?

By Thai-Ha Le and Youngho Chang


This study using the monthly data spanning 1986:01-2011:04 to investigate the relationship between the prices of two strategic commodities: gold and oil. We examine this relationship through the inflation channel and their interaction with the index of the US dollar. We used different oil price proxies for our investigation and found that the impact of oil price on the gold price is not asymmetric but non-linear. Further, results show that there is a long-run relationship existing between the prices of oil and gold. The findings imply that the oil price can be used to predict the gold price.

Topics: E3 - Prices, Business Fluctuations, and Cycles
Year: 2011
DOI identifier: 10.1016/s2110-7017(13)60055-4
OAI identifier:

Suggested articles

To submit an update or takedown request for this paper, please submit an Update/Correction/Removal Request.