Crude Oil and Gold Markets Behavior During Crises

In this thesis I investigate whether gold can serve as a safe-haven asset during crises based on the analysis of financial crisis of 2008 and crisis caused by COVID-19 pandemic. I also assess whether there is a pattern of behavior for gold and crude oil during crises. The long-run relationship of crude oil, inflation expectation and interest rate on gold price movements was found. Interest rate and inflation expectation have short term relationship with dependent variable during COVID-19 crisis. Crude oil has short-term relationship with gold prices during the financial crisis of 2008. Gold prices negatively related to crude oil prices, which supports the role of gold as a safe haven. Gold serves as a hedge against inflation as it moves in the same direction.