There are several commonly held beliefs in the investment community regarding the relationship between gold and other variables: namely, the U.S. dollar, the 10-year Treasury yield, the oil price, inflation and market volatility or risk. At the same time, we know that central banks have adopted widespread large-scale asset purchase programs during and since the period that began with the Global Financial Crisis (GFC) in 2008/09, over which time monetary authority balance sheets expanded at a dramatic rate. This paper explores the nature of the relationships between gold and the other variables before and after the GFC in this context. The paper shows that the relationships have indeed changed since the GFC in terms of both significance and direction of causality.
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