Mood and Precious Metal Prices
11 Pages Posted: 8 Sep 2011 Last revised: 9 Sep 2011
Date Written: September 7, 2011
We investigate whether proxies for mood play a role in the pricing of gold, silver, platinum and palladium. Using several mood proxies derived from weather and biorhythms factors, our tests suggest some individually significant relationships, but with very low overall explanatory power. We conclude that, unlike in equity pricing, there does not appear to be, at this stage, a role for mood proxies in further developing our understanding of precious metal pricing.
Keywords: gold, mood, risk as feelings
JEL Classification: G12
Suggested Citation: Suggested Citation