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Asymmetrical connectedness between infectious diseases-related equity market volatility and prices of precious metals

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  • Guo, Changrong
  • Zhang, Xiangyu
  • Raza, Syed Ali
  • Masood, Amna

Abstract

Several infectious diseases have impacted global economies and equity markets. The volatility induced by equity markets is a triggering phenomenon for various markets, such as precious metals. Therefore, this novel study is an attempt to provide evidence regarding the effect of volatility in equity markets impacted by infectious diseases on the price variations of precious metals. Accordingly, this research utilized a “Non-Parametric Causality in Quantiles Technique” to analyze daily data from January 1997 to February 2022. Gold, silver, platinum, and palladium are selected as precious metals. The study's estimations signify the influence of EMV-ID on the prices of precious metals suggesting that EMV-ID is an impressive predictor of the metals' prices. The study's result indicates that gold is the most influenced metal; as EMV-ID significantly changes the prices of gold. The pronouncements of the current research paper will assist portfolio managers, financial experts, policymakers, and investors. Therefore, they should consider EMV-ID as a key factor in the volatility of precious metals.

Suggested Citation

  • Guo, Changrong & Zhang, Xiangyu & Raza, Syed Ali & Masood, Amna, 2024. "Asymmetrical connectedness between infectious diseases-related equity market volatility and prices of precious metals," Resources Policy, Elsevier, vol. 88(C).
    • Handle: RePEc:eee:jrpoli:v:88:y:2024:i:c:s0301420723011819
    DOI: 10.1016/j.resourpol.2023.104470
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