International Journal of Mining, Reclamation and Environment
Covid-19 has damaged the global economy, as the series of lockdowns had negative impacts on the g... more Covid-19 has damaged the global economy, as the series of lockdowns had negative impacts on the global economy. Investors around the world invested heavily in gold, and as a result, steep increase occurred. This study was intended to determine the relationship between COVID-19 infection rates and the price of gold, using different statistical analyses. Johansen cointegration test revealed that cointegration existed from a lag of 0 to 21 days, yet no relationship was observed from day 22 onwards. Also, Granger causality test revealed that gold price had a significant response to increasing COVID-19 cases. Conversely, gold price did not have Granger causes on the COVID-19 infection rates. Furthermore, the Vector Error Correction Model (VECM) result indicated that a 1% increase in COVID-19 cases led to a 0.0166% increase in gold price. Considering the exponential growth in COVID-19 cases of 17.38% average growth per day during the period from 1 January 2020 to 31 March 2022, 0.2885% increase in gold price per day has been attributed from COVID-19 cases. The sequential methodology presented in this paper is useful to potential gold investors in understanding the responsiveness of gold price to global pandemics and forecasting future gold prices during such global crises.
International Journal of Mining, Reclamation and Environment, 2022
Covid-19 has damaged the global economy, as the series of lockdowns had negative impacts on the g... more Covid-19 has damaged the global economy, as the series of lockdowns had negative impacts on the global economy. Investors around the world invested heavily in gold, and as a result, steep increase occurred. This study was intended to determine the relationship between COVID-19 infection rates and the price of gold, using different statistical analyses. Johansen cointegration test revealed that cointegration existed from a lag of 0 to 21 days, yet no relationship was observed from day 22 onwards. Also, Granger causality test revealed that gold price had a significant response to increasing COVID-19 cases. Conversely, gold price did not have Granger causes on the COVID-19 infection rates. Furthermore, the Vector Error Correction Model (VECM) result indicated that a 1% increase in COVID-19 cases led to a 0.0166% increase in gold price. Considering the exponential growth in COVID-19 cases of 17.38% average growth per day during the period from 1 January 2020 to 31 March 2022, 0.2885% increase in gold price per day has been attributed from COVID-19 cases. The sequential methodology presented in this paper is useful to potential gold investors in understanding the responsiveness of gold price to global pandemics and forecasting future gold prices during such global crises.
Understanding the interdependency of commodity market pricing system is very important for runnin... more Understanding the interdependency of commodity market pricing system is very important for running a successful mining business. Much of the iron ore price is derived from the prices of other commodities. This study investigates the relationship between monthly iron ore prices against 12 other monthly commodity prices or indices including LNG, aluminium, nickel, silver, Australian coal, zinc, gold, oil, tin, copper, lead, and Commodity Price Index (Metals) in both bivariate and multivariate perspectives. An augmented Dickey-Fuller (ADF) test is carried out to ensure that all the time series commodity prices and index are non-stationary. In multivariate modelling co-integration tests, observation is made on how many co-integrations exist out of 12 co-integrations for each respective lag between 0 and 45 months’ period. It is observed that 6 out of 12 commodity prices follow co-integrations in 1-month lag and continues in a cyclic pattern until 27 months after which it disappears. The...
International Journal of Mining, Reclamation and Environment
Covid-19 has damaged the global economy, as the series of lockdowns had negative impacts on the g... more Covid-19 has damaged the global economy, as the series of lockdowns had negative impacts on the global economy. Investors around the world invested heavily in gold, and as a result, steep increase occurred. This study was intended to determine the relationship between COVID-19 infection rates and the price of gold, using different statistical analyses. Johansen cointegration test revealed that cointegration existed from a lag of 0 to 21 days, yet no relationship was observed from day 22 onwards. Also, Granger causality test revealed that gold price had a significant response to increasing COVID-19 cases. Conversely, gold price did not have Granger causes on the COVID-19 infection rates. Furthermore, the Vector Error Correction Model (VECM) result indicated that a 1% increase in COVID-19 cases led to a 0.0166% increase in gold price. Considering the exponential growth in COVID-19 cases of 17.38% average growth per day during the period from 1 January 2020 to 31 March 2022, 0.2885% increase in gold price per day has been attributed from COVID-19 cases. The sequential methodology presented in this paper is useful to potential gold investors in understanding the responsiveness of gold price to global pandemics and forecasting future gold prices during such global crises.
International Journal of Mining, Reclamation and Environment, 2022
Covid-19 has damaged the global economy, as the series of lockdowns had negative impacts on the g... more Covid-19 has damaged the global economy, as the series of lockdowns had negative impacts on the global economy. Investors around the world invested heavily in gold, and as a result, steep increase occurred. This study was intended to determine the relationship between COVID-19 infection rates and the price of gold, using different statistical analyses. Johansen cointegration test revealed that cointegration existed from a lag of 0 to 21 days, yet no relationship was observed from day 22 onwards. Also, Granger causality test revealed that gold price had a significant response to increasing COVID-19 cases. Conversely, gold price did not have Granger causes on the COVID-19 infection rates. Furthermore, the Vector Error Correction Model (VECM) result indicated that a 1% increase in COVID-19 cases led to a 0.0166% increase in gold price. Considering the exponential growth in COVID-19 cases of 17.38% average growth per day during the period from 1 January 2020 to 31 March 2022, 0.2885% increase in gold price per day has been attributed from COVID-19 cases. The sequential methodology presented in this paper is useful to potential gold investors in understanding the responsiveness of gold price to global pandemics and forecasting future gold prices during such global crises.
Understanding the interdependency of commodity market pricing system is very important for runnin... more Understanding the interdependency of commodity market pricing system is very important for running a successful mining business. Much of the iron ore price is derived from the prices of other commodities. This study investigates the relationship between monthly iron ore prices against 12 other monthly commodity prices or indices including LNG, aluminium, nickel, silver, Australian coal, zinc, gold, oil, tin, copper, lead, and Commodity Price Index (Metals) in both bivariate and multivariate perspectives. An augmented Dickey-Fuller (ADF) test is carried out to ensure that all the time series commodity prices and index are non-stationary. In multivariate modelling co-integration tests, observation is made on how many co-integrations exist out of 12 co-integrations for each respective lag between 0 and 45 months’ period. It is observed that 6 out of 12 commodity prices follow co-integrations in 1-month lag and continues in a cyclic pattern until 27 months after which it disappears. The...
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Papers by Yoochan Kim