Safe Haven and Hedge Properties of Gold: Implication for Risk Management
Haddash, Ghadeer
Haddash, Ghadeer
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Abstract
In accordance with the timing of fiscal and monetary stimulus measures to help the faltering economy, this study investigates the function of gold as a hedge or safe-haven asset during various COVID-19 pandemic crisis phases. Empirical analyses are carried on gold and major stock indices for a period spanning from March 1, 2012, to January 28, 2022. The methodology employs a multiple linear regression model. The results suggest that gold was a safe-haven asset for stock markets during the pandemic, which may have been due to investors increasing their investment in gold as a "flight to safety asset" during the crisis. Additionally, a large increase in hedging expenses. These results shed light on how gold has changed over time as a hedge and safe-haven asset, and they offer direction to policymakers, regulators, and the media