The relationship between gold prices in Vietnam and the global market

Abstract

The objective of this study is to investigate the relationship between gold prices in Vietnam and global gold prices.
The data used in this study include daily series of the gold prices in Vietnam (SJC) and global gold prices over
the period from June 1st, 2013 to August 31st 2016. Using Granger test, results of the study show that changes
in the global gold prices have effects on changes in Vietnamese gold prices with the 2 days lag.In addition,
results derived from the regressionanalysis point out that when the global gold price increases or decreases 1
percent at the current day, the gold price in Vietnam will increase or decrease 0.18 percent in the next day and
continuously increase or decrease 0.06 percent in the second day with the statistical significant at the 1% and
5% level, respectively