Theoretical and Applied Economics
No. 4 / 2024 (641), Winter
The essential role of U.S.-China tensions: a fresh insight into the gold market
Wuchang University of Technology, China
Abstract. Understanding the pivotal role of U.S.-China tensions in shaping the dynamics of gold market is crucial for constructing high-performing portfolios. To this end, our study employs both full and sub sample approaches to explore the intricate relationship between the U.S.-China Tension Index (UCT) and gold price (GP). Our quantitative analysis reveals a dual-faceted impact of UCT on GP, which deviates from the inter-temporal capital asset pricing model’s supposition. There are positive effects, suggesting that heightened tensions between the U.S. and China might stimulate a surge in the gold market. Nevertheless, the negative implications challenge this perspective, largely owing to other sources of uncertainty, such as the volatility of U.S. dollar and global financial crises. In turn, GP exerts both beneficial and detrimental effects on UCT, emphasizing that the dynamics of gold market could either amplify or mitigate these tensions, thereby functioning as a warning indicator to a certain degree. Against a canvas of mounting uncertainties in the U.S.-China relations and a skyrocketing trend in gold prices, our research offers insightful recommendations aimed at empowering investors to optimize their returns and guiding policymakers in fostering a more stable economic and political landscape.
Contents
Digitalization and innovation: a regional perspective on their interaction
Assessing the macroeconomic challenges in Romania after the economic and financial crisis
Green finance and innovation input: the promoters of carbon neutrality in China
A simple model of online marketing, production, profit and growth
The relationship of digital payments, macroeconomic variables, and banking stability in developing Asia
Modelling the relationship between inflation and uncertainty with existence of structural break: evidence from Azerbaijan
Analysis of the global energy resources evolution in the context of the population growth
Assessing the impact of energy and macroeconomic shocks on the Romanian economy: a Bayesian VAR approach
Two faces of the same coin: integrated perspectives of public and private debt on the effects of interdependence on financial stability
Institutional quality and sustainability: empirical study in 11 MENA countries
The effect of population ageing on savings: a time series analysis for Türkiye
Workplace economics – How does the Impostor Syndrome affect organisational output?
COVID-19 and the labour market: regional shifts of human capital working in technology and employment
Validity of the environmental Kuznets Curve in Bangladesh under the role of financial development
The impact of doing business indicators on economic growth in emerging market economies: a cross-sectional analysis
The essential role of U.S.-China tensions: a fresh insight into the gold market
The dispersion of poverty in some Romanian rural areas – good examples of rural localities with the lowest poverty rates
The stability and Growth Pact in Practice: inefficiencies of previous debt rules and the way forward
Leaders in disguise: power, perception, and paradox – economics and the fragile authority of politicians
Investigating the corporate debt and real investment nexus: dynamics and challenges in a shifting financial landscape
The hidden economy revealed: profiling informal workers through random forest classification
The impact of oil price shocks on economic growth in Algeria
The determinants of political instability: the role of mining resources
Quantitative easing and its implications for contingent convertible triggers: an analytical perspective