Issue: Số 26 - Tháng 12 - 2022Tài chính - Ngân hàng - Bảo hiểm
The COVID-19 pandemic’s impacts on the orrelation between the returns of gold and stocks
Published: August 1, 2026
Abstract
In this study, the research samples are the closing price of the daily stock and gold from January 4, 2010, to March 24, 2021. The data are collected into two phases, namely before and after the outbreak of COVID-19. This study finds out that there was a negative correlation between the returns of gold and stocks in the period before the COVID-19 pandemic. It suggested that investors should had more gold in their portfolios to diversify investments and hedge risks. However, after the outbreak of COVID-19, there was a positive correlation between the returns of gold and stocks. At that time, the development of the gold market created favorable conditions for the growth of the stock market. This study’s findings are expected to provide investors and policymakers with useful information to deal with extreme shocks or events in markets in the future.
Keywords
COVID-19gold marketstock markethedging
References
1.
AlAmeer, M., Hammad, W., Ismail, A., & Hamdan, A. (2018). The relationship of gold price with the stock market: The case of Frankfurt Stock Exchange. International Journal of Energy Economics and Policy, 8(5), 357-371.
2.
Baur, D. G., & McDermott, T. K. (2010). Is gold a safe haven? International evidence. Journal of Banking & Finance, 34(8), 1886-1898.
3.
Bouri, E., Cepni, O., Gabauer, D., & Gupta, R. (2021). Return connectedness across asset classes around the COVID-19 outbreak. International Review of Financial Analysis, 73, 101646.
4.
Choudhry, T., Hassan, S. S., & Shabi, S. (2015). Relationship between gold and stock markets during the global financial crisis: Evidence from nonlinear causality tests. International Review of Financial Analysis, 41, 247-256.
5.
Dickey, D. A., & Fuller, W. A. (1979). Distribution of the estimators for autoregressive time series with a unit root. Journal of the American Statistical Association, 74, 427-431.
6.
Drake. (2022). The gold-stock market relationship during COVID-19. Finance Research Letters.
7.
Gharib, C., Mefteh-Wali, S., & Jabeur, S. B. (2021). The bubble contagion effect of COVID-19 outbreak: Evidence from crude oil and gold markets. Finance Research Letters, 38, 101703.
8.
Granger, C. W. (1980). Testing for causality: A personal viewpoint. Journal of Economic Dynamics and Control, 2, 329-352.
9.
Hung, & Vo. (2021). Directional spillover effects and time-frequency nexus between oil, gold and stock markets: Evidence from pre and during COVID-19 outbreak. International Review of Financial Analysis.
10.
Mensi, Sensoy, Vo, & Kang. (2020). Impact of COVID-19 outbreak on asymmetric multifractality of gold and oil prices. Resources Policy, 69, 101829.
11.
Sharif, A., Aloui, C., & Yarovaya, L. (2020). COVID-19 pandemic, oil prices, stock market, geopolitical risk and policy uncertainty nexus in the US economy: Fresh evidence from the wavelet-based approach. International Review of Financial Analysis, 70, 101496.
