Title: A correspondence analysis on dynamics of local gold prices among major consumer economies during the pre-covid period and the pandemic period

Authors: S. Sreejith; Hareesh N. Ramanathan

Addresses: Cochin University of Science and Technology, Kochi, Kerala, 682022, India ' Cochin University of Science and Technology, Kochi, Kerala, 682022, India

Abstract: The largest consumers of physical gold are China and India. Consumer attitudes towards gold in these emerging markets for consumption and investment are linked to their culture. Prices of gold in Indian and Chinese local markets mainly differ from international markets, either at a premium or at a discount price. The recent economic slowdown during the outbreak of COVID-19 also affected investors' investment preferences, especially towards safe-haven investments. Social restrictions, economic slowdown, and high gold prices have contributed to the same. The premium or discount to gold prices in the local market also gives financial leverage. The study compares the pricing strategies adopted by the largest consumer markets of gold during the pre-COVID-19 period and the COVID-19 pandemic period. India followed discount prices in both periods. China regularly followed premium costs, and a radical shift occurred during the pandemic. China shifted to discount prices during the COVID-19 period.

Keywords: gold price; premium gold price; discount gold price; pandemic; COVID-19; correspondence analysis.

DOI: 10.1504/IJMEF.2025.148209

International Journal of Monetary Economics and Finance, 2025 Vol.18 No.4, pp.215 - 227

Accepted: 04 Sep 2023
Published online: 01 Sep 2025 *

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