Economic drivers of volatility and correlation in precious metal markets

Research output: Contribution to journalResearch articleContributedpeer-review



We investigate the time-varying dynamics of the precious metal markets. We employ a mixed data sampling technique to identify the impact of macroeconomic and financial drivers from G7 and BRICS countries on the daily volatility and pairwise correlation of Gold, Silver, Platinum, and Palladium. We find that the U.S. and Chinese economies in particular influence the precious metal markets, but in opposite directions. The stock markets and trade balance of both G7 and BRICS countries, as well as the consumer confidence of G7 countries, are the key drivers for the volatility of precious metals. The most influential drivers for correlation are stock markets, money supply, and the inflation rate. Surprisingly, the economic policy uncertainty does not affect the dynamics as much as expected. Lastly, the global financial crisis in 2008 affected the direction of most of the macroeconomic and financial drivers.


Original languageEnglish
Article number100242
Number of pages20
JournalJournal of Commodity Markets
Volume28 (2022)
Publication statusPublished - 8 Jan 2022

External IDs

ORCID /0000-0003-4359-987X/work/142255150


ASJC Scopus subject areas


  • Economic policy uncertainty, Financial drivers, Long-term correlation, Long-term volatility, Macroeconomic drivers, Mixed data sampling, Precious metals

Library keywords