ISSN: 2222-6990
Open access
This paper examines whether Covid-19 pandemic has changed the main economy factors affecting gold prices, and the relationship between KLCI and gold price in Malaysia. Gold plays an important role in an economy during normal and uncertain market situations. This research involved 62 monthly data covering the period of January 2016 to February 2021. Unit root and diagnostic tests are conducted on the data to ensure the results are valid. There are six macroeconomic variables involved, five of them are the independent variables and the remaining one is dependent variable. Multiple regression time series analysis is use to analyse the data in the perspectives of full sample, pre- Covid-19 period and during Covid-19 period. The results of this study found that few main economy factors ceased to be significant, and there is change relationship direction between exchange rate and gold price during Covid-19 period. We discovered KLCI has an inverse relationship with gold price. Future research can consider extending our analysis to neighbouring countries.
Bapna, I., Sood, V., Totala, N. K., & Saluja, H. S. (2012). Dynamics of macroeconomic variables affecting price innovation in gold: A relationship analysis. Pacific Business Review International, 5(1), 1-10.
Cheema, M., Faff, R., & Szulczyk, K. (2020). The influence of the COVID-19 pandemic on safe haven assets (25 July 2020), https://voxeu.org/article/influence-covid-19-pandemic-safe-haven-assets
Dias, R. T., Pardal, P., Santos, H., & Vasco, C. (2021). Covid-19 Pandemic and its influence on safe havens: an examination of gold, silver, and platinum, Handbook of Research on Reinventing Economies and Organizations Following a Global Health Crisis (Chapter 16), 289-303
Golubova, A. (2021). The pandemic 'changed the world' and gold price will reap the benefits - CPM Group (23 March 2021), https://www.kitco.com/news/2021-03-23/The-pandemic-changed-the-world-and-gold-price-will-reap-the-benefits-CPM-Group.html
Gopaul, K. (2021). How the pandemic impacted gold prices, Funds Europe (15 April 2021), https://www.funds-europe.com/news/how-the-pandemic-impacted-gold-prices
Hoong, T. B. (2021). Does gold still matter post-pandemic?, New Straits Times (18 February 2021), https://www.nst.com.my/opinion/letters/2021/02/666638/does-gold-still-matter-post-pandemic
Ibrahim, S. N., Kamaruddin, N. I. & Hasan, R. (2014). The determinants of gold prices in Malaysia, Journal of Advanced Management Science, 2(1), 38-41
Levin, E. J., Montagnoli, A., & Wright, R. E. (2006). Short-run and long-run determinants of the price of gold, World Gold Council (Research Study no. 32), 1-68.
Lubis, S. W., Alfarisi, M. F., & Adrianto, F. (2021). The effect of oil prices, gold and exchanges on JCI during the Covid-19, Enrichment: Journal of Management, 12(1), 135-145
Manoj, J., & Suresh, K. K. (2019). Forecast model for price of gold: multiple linear regression with principal component analysis. Thailand Statistician, 17(1), 125-131.
Mat Dalam, A., Rashid, N. K. A., & Padli, J. (2019). Factors determining gold prices in Malaysia, Universiti Malaysia Terengganu Journal of Undergraduate Research, 1(2), 75-82
PriceWaterhouseCoopers. (2016). The Malaysian oil & gas industry challenging times, but fundamentals intact, PriceWaterhouseCoopers Malaysia (May 2016), 1-12
Prime Minister's Office of Malaysia. (2020). Restriction of Movement Order (16 March 2020), https://www.pmo.gov.my/2020/03/movement-control-order/
Salisu, A. A., Vo, X. V., & Lawal, A. (2021). Hedging oil price risk with gold during COVID-19 pandemic, Resources Policy, 70 (March 2021)
Sekar, K. R., Srinivasan, M., Ravidiandran, K. S., & Sethuraman, J. (2017). Gold price estimation using a multi variable model, International Conference on Networks & Advances in Computational Technologies (NetACT), 364-369.
Shafiee, S., & Topal, E. (2010). An overview of global gold market and gold price forecasting. Resources Policy, 35(3), 178-189.
Sukri, M. K. A. B., Zain, M. N. H. B., & Abidin, Z. N. S. B. (2015). The relationship between selected macroeconomic factors and gold price in Malaysia, Proceeding - Kuala Lumpur International Business, Economics and Law Conference 8, 1(December 12 – 13, 2015), 183-193
Wan, Chan-Da. (2020). Malaysia – An Unexpected Disruption to Teaching and Learning (16 June 2020), The HEAD foundation, https://headfoundation.org/HESB8/Malaysia-unexpected-disruption-teaching-learning#:~:text=The%20MCO%20announcement%20on%20the,to%20cease%20with%20immediate%20effect.
Yousaf, I., Bouri, E., Ali, S., & Azoury, N. (2021). Gold against Asian Stock Markets during the COVID-19 outbreak, Journal of Risk and Financial Management, 14(186), 1-23
Zakaria, H., Shukur, N. A., Affandi, S., & Mahmood, W. M. (2015). Factors Affecting the Price of Gold in Malaysia, Journal of Basic and Applied Scientific Research, 5(7), 41-46
In-Text Citation: (Yau et al., 2021)
To Cite this Article: Yau, D. L. I., Ching, C. P., Hwang, J. Y. T., Yeng, S. K., & Janang, J. S. (2021). Does the Factors Affecting Gold Price Changed During Covid-19 Period in Malaysia? International Journal of Academic Research in Business and Social Sciences, 11(9), 259–269.
Copyright: © 2021 The Author(s)
Published by Human Resource Management Academic Research Society (www.hrmars.com)
This article is published under the Creative Commons Attribution (CC BY 4.0) license. Anyone may reproduce, distribute, translate and create derivative works of this article (for both commercial and non-commercial purposes), subject to full attribution to the original publication and authors. The full terms of this license may be seen at: http://creativecommons.org/licences/by/4.0/legalcode