Navigating crises: Gold's role as a safe haven for U.S. sectors

Harald Kinateder; Ikhlaas Gurrib; Tonmoy Choudhury

doi:10.1016/j.frl.2024.106210

Navigating crises: Gold's role as a safe haven for U.S. sectors

Harald Kinateder
, Ikhlaas Gurrib
, Tonmoy Choudhury

University of Passau
Canadian University Dubai
SP Jain School of Global Management – Sydney Campus

Research output: Contribution to journal › Article › peer-review

13 Citations (Scopus)

Abstract

This paper investigates the correlation between U.S. sectors and gold, and whether gold can serve as a safe haven for investors in specific U.S. sectors during the global financial crisis, COVID-19, and the Russia-Ukraine war. We use data from the Standard & Poor's Depository Receipts (SPDR) Select Sector Exchange Traded Fund (ETF) to capture the performance of the respective sectors. Our findings document that gold is a weak safe haven for most U.S. sectors. Gold is not a safe investment for energy, materials, utilities, and consumer staples. Gold does provide vital protection for financial, consumer discretionary, industrial, technology, and healthcare.

Original language	English
Article number	106210
Journal	Finance Research Letters
Volume	69
DOIs	https://doi.org/10.1016/j.frl.2024.106210
Publication status	Published - Nov 2024
Externally published	Yes

Bibliographical note

Publisher Copyright:
© 2024 The Author(s)

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

SDG 10 Reduced Inequalities
SDG 17 Partnerships for the Goals

Keywords

COVID-19
DCC-GARCH
Exchange-traded funds
Global Financial Crisis
Russia-Ukraine war
Safe haven
U.S. sectors

Access to Document

10.1016/j.frl.2024.106210

Cite this

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title = "Navigating crises: Gold's role as a safe haven for U.S. sectors",

abstract = "This paper investigates the correlation between U.S. sectors and gold, and whether gold can serve as a safe haven for investors in specific U.S. sectors during the global financial crisis, COVID-19, and the Russia-Ukraine war. We use data from the Standard \& Poor's Depository Receipts (SPDR) Select Sector Exchange Traded Fund (ETF) to capture the performance of the respective sectors. Our findings document that gold is a weak safe haven for most U.S. sectors. Gold is not a safe investment for energy, materials, utilities, and consumer staples. Gold does provide vital protection for financial, consumer discretionary, industrial, technology, and healthcare.",

keywords = "COVID-19, DCC-GARCH, Exchange-traded funds, Global Financial Crisis, Russia-Ukraine war, Safe haven, U.S. sectors",

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language = "English",

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T2 - Gold's role as a safe haven for U.S. sectors

AU - Kinateder, Harald

AU - Gurrib, Ikhlaas

AU - Choudhury, Tonmoy

PY - 2024/11

Y1 - 2024/11

N2 - This paper investigates the correlation between U.S. sectors and gold, and whether gold can serve as a safe haven for investors in specific U.S. sectors during the global financial crisis, COVID-19, and the Russia-Ukraine war. We use data from the Standard & Poor's Depository Receipts (SPDR) Select Sector Exchange Traded Fund (ETF) to capture the performance of the respective sectors. Our findings document that gold is a weak safe haven for most U.S. sectors. Gold is not a safe investment for energy, materials, utilities, and consumer staples. Gold does provide vital protection for financial, consumer discretionary, industrial, technology, and healthcare.

AB - This paper investigates the correlation between U.S. sectors and gold, and whether gold can serve as a safe haven for investors in specific U.S. sectors during the global financial crisis, COVID-19, and the Russia-Ukraine war. We use data from the Standard & Poor's Depository Receipts (SPDR) Select Sector Exchange Traded Fund (ETF) to capture the performance of the respective sectors. Our findings document that gold is a weak safe haven for most U.S. sectors. Gold is not a safe investment for energy, materials, utilities, and consumer staples. Gold does provide vital protection for financial, consumer discretionary, industrial, technology, and healthcare.

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KW - DCC-GARCH

KW - Exchange-traded funds

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KW - Russia-Ukraine war

KW - Safe haven

KW - U.S. sectors

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DO - 10.1016/j.frl.2024.106210

M3 - Article

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SN - 1544-6123

VL - 69

JO - Finance Research Letters

JF - Finance Research Letters

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ER -

Navigating crises: Gold's role as a safe haven for U.S. sectors

Abstract

Bibliographical note

UN SDGs

Keywords

Access to Document

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