The drivers of Gold price von Thibault Laffon

Since gold started to be mined thousands years ago, it has been used not only as a commodity, but also as a currency and above all as the supreme store of value. In this paper, I perform a theoretical and econometric analysis of several indicators that could drive gold price. Does the ¿golden constant¿ appear to be right? Is gold an inflation hedge on short-term periods? Does gold act as a currency hedge? These are currently the indicators that are supposed to drive gold price. But new indicators appeared in the 21st century, influencing drive gold price: Central Bank demand, demand from Asia or uncertainty coming from geopolitical and political turmoil. Does Gold act as a "safe haven asset"? A currency hedge? An inflation hedge? You will find out in this paper.

Thibault Laffon is from Paris. He has received his MSc in International Finance from HEC Paris. He is currently working as ENGIE Global Energy Management, Graduate Program.