Research On The Influencing Factors Of Gold Stock Price During The Federal Reserve Policy Shift Period

Gold stocks contain stock,commodity and currency attributes,playing a unparalleled role in the financial market.It is precisely because of its complexity that research on its pricing factors has been inconclusive.The complex and compound financial asset properties of gold stocks can also undertake the function of asset allocation of major categories.Since the global financial crisis in 2008,the political and economic conflict in the world has been increased.In particular,the policy shift of the Federal Reserve and military conflicts in some regions have made gold assets to be the focus of investors.Compared with cross-market investment,the trading rules and entry thresholds of paper gold and gold futures are different from traditional stock market investment.As part of a complex financial asset,gold stocks have both the hedging function and the convenience.Although previous studies studied gold price and commodity stocks,they have rarely touched on the pricing factors of gold stocks.Therefore,to explore the factors of gold stock pricing in the macro environment of the change of the Fed’s policies shift has become an urgent problem.The available papers define the shift period of the Fed monetary policy hazily.This paper uses the crawler program to get the interest rate hikes,interest rate cuts and other information in the Federal Reserve Monetary Policy Implementation Reports after 2007 to obtain the historical implementation of the Fed monetary policy.Combined with relevant literature,the Fed monetary policy 2020 is divided into an easing period and a tightening period;based on this basis,this paper comprehensively analyzes gold price and Chinese market factors,and conducts an empirical analysis on the pricing factors of Chinese gold stocks,trying to clarify the contribution of different factors to the prices of gold stocks,providing investors with investment decision-making reference and helping asset management industry develop soundly,and adding new theoretical empirical support and marginal contribution to compound asset pricing research.The research results of this paper show that the price of Chinese gold stocks show different characteristics due to the Fed policy shift:(1)Both the gold price and the Shanghai Composite Index have a positive impact on the prices of gold stocks;(2)During the period of easing and tightening of the Fed monetary policy,the prices of gold stocks was greatly affected by the Shanghai securities composite index,but during the period of tightening,the role of gold in explaining gold stocks became more significant.(3)In different periods of the Fed’s policy shift,Chinese sentiment indicators and the US panic index have a moderating impact on the Chinese gold stock determinants.But Chinese investor sentiment significantly enhanced the explanatory power of Chinese market factors to gold stock prices during the tightening period,while US investor sentiment,as measured by the VIX,did not significantly change the explanation strength of gold price factors on gold stock prices during periods of contraction or expansion.