Examining the Dynamics Relationship between Gold, Oil prices and Stock Markets: Experience from Jordan Economy

Abstract

The volatilities of gold  and oil prices  have extensive impacts on the  financial activities of any country in the world. Consequently,  financial markets  and these two commodities have seen a period of extreme volatility raise the issue of the transmission the shocks  and  contagion  between these  markets through turmoil  periods .  for  that reason this paper came in order to  examine  the dynamics relationship between the return of  Amman Stock Exchange (ASE) and the price of the most important commodities in the world (crude oil , and  gold ) for the period span from Jan 1993 to Apr 2016 .

The main conclusion refer for a Long-run causality running from gold prices and oil prices to Amman Stock  Market Returns. Also for existing co integration among fluctuations in gold price, and oil price on the stock prices of  ASE which has remarkable implications for all investors in the region.

Keywords: Gold, Crude Oil, Stock Markets, VAR, Granger Causality Test.