Can Gold Be Used As a Hedge or Safe Haven for Equity and Exchange Rate?
In this paper we investigate the ability of gold as a hedge and safe haven for equity and exchange rates of these countries during extreme market movement for seven Asian countries which are China, India, Indonesia, Japan, Korea, Malaysia and Thailand. Hedge is defined as negative relationship between two assets during normal condition while safe haven is defined as negative relationship between two assets during extreme price movement. This study covered from 4th March 1994 until 28th February 2014 for gold, equity and exchange rates. The results from quantile regression models show that gold is not a hedge for equity but a safe haven for China, India and Malaysia daily’s equity returns. For weekly’s equity returns, gold only act as safe haven for Thailand. For the daily’s exchange rates returns, gold act as a hedge for India, Japan and Malaysia exchange rates. Moreover gold act as a safe haven for Indonesia, Japan, Malaysia and Thailand in daily’s exchange rates returns while for Japan and Malaysia in weekly’s exchange rates return
Disclaimer/Regarding indexing issue:
We have provided the online access of all issues and papers to the indexing agencies (as given on journal web site). It’s depend on indexing agencies when, how and what manner they can index or not. Hence, we like to inform that on the basis of earlier indexing, we can’t predict the today or future indexing policy of third party (i.e. indexing agencies) as they have right to discontinue any journal at any time without prior information to the journal. So, please neither sends any question nor expects any answer from us on the behalf of third party i.e. indexing agencies.Hence, we will not issue any certificate or letter for indexing issue. Our role is just to provide the online access to them. So we do properly this and one can visit indexing agencies website to get the authentic information. Also: DOI is paid service which provided by a third party. We never mentioned that we go for this for our any journal. However, journal have no objection if author go directly for this paid DOI service.