Gold as Safe Haven Strategy During Covid-19 Pandemic: The Case of Bursa Malaysia

Authors

  • Norasikin Salikin Universiti Sains Islam Malaysia, Malaysia
  • Norailis Ab. Wahab Universiti Sains Islam Malaysia, Malaysia

Abstract

Studies on the property of gold investment as safe haven strategies have been done worldwide.  However, the study on the impact of Covid-19 crisis is limited as the crisis is still new.  This study is trying to fill in the gap by identifying the safe haven property of gold in Malaysia market.  Preliminary results show that performance of gold price is parallel with the performance of KLSE during the pandemic.  It shows that the property does not exist in Malaysian market.  However, statistical test needs to be done to identify the result precisely.  It hopes that result of the study could help investors in constructing better portfolio in managing the risk of their investment

References

Akhtaruzzaman, M., Boubaker, S., Lucey, B. M., & Sensoy, A. (2021). Is gold a hedge or a safe-haven asset in the COVID–19 crisis? Economic Modelling, 102, 105588.

Baur, D. G., & McDermott, T. K. (2010). Is gold a safe haven? International evidence. Journal of Banking & Finance, 34(8), 1886-1898.

Baur, D. G., & McDermott, T. K. (2016). Why is gold a safe haven?. Journal of Behavioral and Experimental Finance, 10, 63-71.

Boubaker, H., Cunado, J., Gil-Alana, L. A., & Gupta, R. (2020). Global crises and gold as a safe haven: Evidence from over seven and a half centuries of data. Physica A: Statistical Mechanics and Its Applications, 540, 123093.

Bredin, D., Conlon, T., & Potì, V. (2015). Does gold glitter in the long-run? Gold as a hedge and safe haven across time and investment horizon. International Review of Financial Analysis, 41, 320-328.

Ghazali, M. F., Ussdek, N. F. M., Lean, H. H., Abdullah, A. M., & Krishnan, A. R. (2022). Understanding the Gold-Inflation Nexusi In Malaysia: Hedge and Safe Haven Perspectives. International Journal of Business and Society, 23(1), 279-296.

Ghazali, M. F., Lean, H. H., & Bahari, Z. (2020). Does gold investment offer protection against stock market losses? Evidence from five countries. The Singapore Economic Review, 65(02), 275-301.

GoldBroker.com (2023), Gold Price in US Dollar, https://goldbroker.com/charts/gold-price/usd#historical-chart access on 8th January 2024

Gürgün, G., & Ünalmış, İ. (2014). Is gold a safe haven against equity market investment in emerging and developing countries? Finance Research Letters, 11(4), 341-348.

Investing.com (2023), FTSE Malaysia KLCI (KLSE), https://www.investing.com/indices/ftse-malaysia-klci-historical-data access on 8th January 2024

Ji, Q., Zhang, D., & Zhao, Y. (2020). Searching for safe-haven assets during the COVID-19 pandemic. International Review of Financial Analysis, 71, 101526.

Khan, K., Zhao, H., Zhang, H., Yang, H., Shah, M. H., & Jahanger, A. (2020). The impact of COVID-19 pandemic on stock markets: An empirical analysis of world major stock indices. The Journal of Asian Finance, Economics and Business, 7(7), 463-474.

Kusumahadi, T. A., & Permana, F. C. (2021). Impact of COVID-19 on global stock market volatility. Journal of Economic Integration, 36(1), 20-45.

Mitchell, E. P. (2020). Corona virus: Global pandemic causing world-wide shutdown. Journal of the National Medical Association, 112(2), 113.

Schwab, K., & Malleret, T. (2020, March). The great reset. In World economic forum, Geneva Vol. 22).

Worldometer (2023), Coronavirus Malaysia Graphs https://www.worldometers.info/coronavirus/country/malaysia/ access on 8th January 2024

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(4), 186.

Downloads

Published

2024-03-16

How to Cite

Salikin, N., & Wahab, N. A. (2024). Gold as Safe Haven Strategy During Covid-19 Pandemic: The Case of Bursa Malaysia. Proceedings of Femfest International Conference on Economics, Management, and Business, 2, 460–463. Retrieved from https://ejournal.unida.gontor.ac.id/index.php/FICCOMSS/article/view/11820