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The Relationship Between Crude Oil Prices, EUR/USD Exchange Rate and Gold Prices

Author

Listed:
  • Benlaria Houcine

    (Department of Business Administration, Jouf University, Saudi Arabia,)

  • Gheraia Zouheyr

    (Department of Business Administration, Jouf University, Saudi Arabia)

  • Belbali Abdessalam

    (Adrar University, Algeria,)

  • Hadji Youcef

    (Adrar University, Algeria,)

  • Abdelli Hanane

    (Department of Business Administration, Jouf University, Saudi Arabia,)

Abstract

This study aims to analyze and measure the nature of the relationship between crude oil price, EUR/USD exchange rate, and Gold price by using monthly data from January 1999 to October 2019. The result of data analysis using Auto-Regressive Distributed Lag (ARDL) shows that there exists a co-integration relationship between the price of crude oil in U.S. dollars per barrel (C.O.), and the interpreting variables in this study, represented in the Euro Dollar Exchange Rate (E.R.) and the Gold Price in U.S. dollars per ounce (G.P.). The relationship that happened only in a short-term one. Granger causality test result shows one-way causal relationship from the Euro/ Dollar towards oil prices; that is, the variation in the exchange rate causes changes in oil prices. Also a unidirectional causal relationship has been found between the gold price and crude oil price. The relationship between the study variables is positive.

Suggested Citation

  • Benlaria Houcine & Gheraia Zouheyr & Belbali Abdessalam & Hadji Youcef & Abdelli Hanane, 2020. "The Relationship Between Crude Oil Prices, EUR/USD Exchange Rate and Gold Prices," International Journal of Energy Economics and Policy, Econjournals, vol. 10(5), pages 234-242.
    • Handle: RePEc:eco:journ2:2020-05-27
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    References listed on IDEAS

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    Cited by:

    1. Witold Orzeszko, 2021. "Nonlinear Causality between Crude Oil Prices and Exchange Rates: Evidence and Forecasting," Energies, MDPI, vol. 14(19), pages 1-16, September.

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    More about this item

    Keywords

    Crude Oil Price; EUR/USD exchange rate; Gold Price; ARDL;
    All these keywords.

    JEL classification:

    • C58 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Financial Econometrics
    • Q24 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Land
    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy
    • F31 - International Economics - - International Finance - - - Foreign Exchange

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