Psychological Barriers in Gold Prices?

Institute for International Integration Studies Discussion Paper No. 53

19 Pages Posted: 21 Feb 2005

See all articles by Raj Aggarwal

Raj Aggarwal

Kent State University Foundation; University of Akron; Federal Reserve Bank of Cleveland; Kent State University

Brian M. Lucey

Trinity Business School, Trinity College Dublin; Jiangxi University of Finance and Economics; Abu Dhabi University - College of Business Administration; Ho Chi Minh City University of Economics and Finance

Date Written: January 2005

Abstract

This paper examines for the first time the existence of psychological barriers in a variety of daily and intra-day gold price series. This paper uses a number of statistical procedures and presents evidence of psychological barriers in gold prices. We document that prices in round numbers act as barriers with important effects on the conditional mean and variance of the gold price series around psychological barriers.

Keywords: gold, psychological barrier, behavioural finance

JEL Classification: G14, G15

Suggested Citation

Aggarwal, Raj and Aggarwal, Raj and Lucey, Brian M., Psychological Barriers in Gold Prices? (January 2005). Institute for International Integration Studies Discussion Paper No. 53, Available at SSRN: https://ssrn.com/abstract=669761 or http://dx.doi.org/10.2139/ssrn.669761

Raj Aggarwal

Kent State University Foundation ( email )

7380 Sherman Rd
Chesterland, OH 44026
United States
440-729-6010 (Phone)

HOME PAGE: http://www.uakron.edu/colleges/cba/facultylist/a/aggarwal.php

University of Akron ( email )

7380 Sherman Rd
Chesterland, OH 44026
United States
440-729-6010 (Phone)

HOME PAGE: http://www.uakron.edu/colleges/cba/facultylist/a/aggarwal.php

Federal Reserve Bank of Cleveland ( email )

East 6th & Superior
Cleveland, OH 44101-1387
United States

Kent State University ( email )

College of Business Administration
Kent, OH 44242-0001
United States

Brian M. Lucey (Contact Author)

Trinity Business School, Trinity College Dublin ( email )

The Sutherland Centre, Level 6, Arts Building
Dublin 2
Ireland
+353 1 608 1552 (Phone)
+353 1 679 9503 (Fax)

Jiangxi University of Finance and Economics ( email )

South Lushan Road
Nanchang, Jiangxi 330013
China

Abu Dhabi University - College of Business Administration ( email )

PO Box 59911
Abu Dhabi, Abu Dhabi 59911
United Arab Emirates

Ho Chi Minh City University of Economics and Finance ( email )

59C Nguyen Dình Chieu
6th Ward, District 3
Ho Chi Minh City, Ho Chi Minh 70000
Vietnam

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
854
Abstract Views
8,507
Rank
54,152
PlumX Metrics