Can gold hedge against uncertainty in the cryptocurrency and energy markets?

IF 12.9 1区管理学 Q1 BUSINESS

Technological Forecasting and Social Change Pub Date : 2025-02-25 DOI:10.1016/j.techfore.2025.124050

Meng Qin , Xuefeng Shao , Chengming Hu , Chi Wei Su

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Abstract

Studying gold's ability to shield against uncertainties in energy and cryptocurrency markets could aid investors in refining investment portfolios. A novel wavelet quantile correlation methodology is developed to dissect the relationships between the cryptocurrency policy uncertainty index (CPUI) and gold price (GP), energy-related uncertainty index (ERUI) and GP across various quantiles and time horizons. We find that CPUI mainly correlates positively with GP across most quantiles. Gold offers stronger hedging against cryptocurrency policy uncertainty over medium- to long-term horizons than short-term. ERUI's mixed correlations with GP suggest that gold's ability to hedge against energy-related uncertainty is not permanent. By comparison, CPUI has a stronger link with GP than ERUI, indicating gold's more significant hedging potential during cryptocurrency policy uncertainties. During COVID-19, CPUI positively correlated with GP in the short term but negatively in the medium run, confirming gold's short-term hedging against cryptocurrency policy uncertainty. However, EPUI generally negatively correlates with GP, showing limited hedging capacity against energy-related uncertainty. During the Russia-Ukraine conflict, CPUI and ERUI strongly positively correlated with GP, highlighting gold's safe haven role against these uncertainties. Considering these results, valuable insights are furnished for investors and governments to respond flexibly to changes in financial markets.

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来源期刊

Technological Forecasting and Social Change Multiple-

CiteScore

21.30

自引率

10.80%

发文量

813

期刊介绍： Technological Forecasting and Social Change is a prominent platform for individuals engaged in the methodology and application of technological forecasting and future studies as planning tools, exploring the interconnectedness of social, environmental, and technological factors. In addition to serving as a key forum for these discussions, we offer numerous benefits for authors, including complimentary PDFs, a generous copyright policy, exclusive discounts on Elsevier publications, and more.