Does Oil Predict Gold?

In this video, we explore the surprising connection between oil and gold, two of the world's most valuable commodities. We'll analyze the data and examine historical trends to answer the question: Does oil predict gold?

Join us as we dive into the world of global markets and investing, and learn how to make smart financial decisions based on the latest data and expert insights. Whether you're a seasoned investor or just starting out, this video is packed with valuable information and actionable tips to help you succeed.

Topics covered in this video include:

- The history of oil and gold and their role in the global economy
- The impact of global events on oil and gold prices
- The psychology of investing in oil and gold
- Debunking common myths and misconceptions about these two valuable commodities

Don't miss out on this informative and engaging video! Remember to like, comment, and subscribe for more great

Abstract
This paper examines the predictive power of oil price for gold price using the novel nonparametric causality-in-quantiles testing approach. The study uses weekly data over the April 1983-August 2016 period for both the spot and 1-month to 12-month futures markets. The new approach, the causality-in-quantile, allows one to test for causality-in-mean and causality-in-variance when there may be no causality in the first moment but higher order interdependencies may exist. The tests are preferred over the linear Granger causality test that might be subject to misleading results due to misspecification. Contrary to no predictability results obtained under misspecified linear structure, the nonparametric causality-in-quantiles test shows that oil price has a weak predictive power for the gold price. Moreover, the causality-in-variance tests obtain strong support for the predictive capacity of oil for gold market volatility. The results underline the importance of accounting for nonlinearity in the analysis of causality from oil to gold.

#oilandgold #commodities #investing #globalmarkets #financialdecisions #economy #historicaltrends #expertinsights #psychologyofinvesting #debunkingmyths #globalnews #marketanalysis #trading #preciousmetals #wealthmanagement