Casting shadows on natural resource commodity markets: Unraveling the quantile dilemma of gold and crude oil prices

Muhammad Luqman, Adil Mugheri, Najid Ahmad*, Ugur Soytas

*Corresponding author for this work

Research output: Contribution to journalJournal articleResearchpeer-review

Abstract

In this era of globalization and technology, the natural resource commodity futures market holds exceptional significance. Our study endeavors to address the research gap by meticulously investigating the asymmetric relationship between precious metals and energy market prices, spanning from January 2000 to August 2023. We employ a quantile autoregressive distributive lag model to simultaneously evaluate all market conditions while accounting for the asymmetric properties. Results, first, uncover both short-term and long-term associations among various commodities. Notably, we identify significant links between natural gas and gasoline, as well as between gold, silver, platinum, and crude oil. Second, our analysis highlights the asymmetric nature of these relationships, demonstrating that market conditions can exert diverse impacts on the interactions between precious metals and energy commodities. This nuanced understanding is invaluable for making informed decisions in these markets. Third our research offers substantial economic implications for stakeholders such as policymakers, investors, and portfolio managers. A deeper comprehension of the intricate interdependencies between precious metals and energy resources can guide more astute decision-making, potentially leading to enhanced investment strategies and policy adjustments.
Original languageEnglish
Article number104269
JournalResources Policy
Volume86
Number of pages11
ISSN0301-4207
DOIs
Publication statusPublished - 2023

Keywords

  • Crude oil
  • Gasoline
  • Natural gas
  • Precious metals

Fingerprint

Dive into the research topics of 'Casting shadows on natural resource commodity markets: Unraveling the quantile dilemma of gold and crude oil prices'. Together they form a unique fingerprint.

Cite this