Have the Covid-19 Pandemic and Other Crises Similarly Determined the Nexus between Currency Exchange Rates and Gold Prices?

We examine the global financial crisis (GFC), European sovereign debt crisis (SDC), gold market crash (GMC), and COVID-19 crisis to determine whether exchange rates similarly impacted gold prices during crises between May 2007 and May 2021. We find the following: (1) Exchange rates predominantly increase gold prices, having failed to decrease prices during the SDC and the GMC. (2) To some extent, the GFC is comparable to the COVID-19 crisis. (3) US dollar (USD) to British pound exhibited the weakest link with gold prices, only USD to Japanese yen had long-term effects during the normal period, and USD to euro and USD to yen decreased gold prices in the short term only on five occasions. Consistent with the market efficiency hypothesis and random walk theory, we find efficiency in the gold market only during the GFC. Our results suggest gold has served as a safe haven for investors during COVID-19