GOLD, A SAFE HAVEN OF INVESTMENTS AT TIMES OF DISTRESS? - A COMPARISON WITH SWISS FRANC

The aim of this paper is to find the performance of gold in times of economic distress and its performance against a safe haven currency like Swiss Franc. We consider a set of macro-economic indicators of the U.S. to find whether they can impact the price movements of the asset classes considered. The performance of Gold and Swiss France has been analyzed with the data collected on a monthly basis for a sample period of about 28 years spanning from February of 1992 to April of 2020. The correlation analysis of gold and that of Swiss Franc with the equity markets revealed that the Swiss Franc is more negatively correlated to equity markets than gold, and. The regression analysis of gold and that of Swiss Franc revealed that Swiss Franc can be predicted with higher accuracy compared to gold due to the highly volatile nature of gold.