GOLD PRICES: DOES GEOPOLITICAL TENSION REALLY MATTER?

Introduction. Gold price has being demonstrating stable tendency to rise during recent time. Stronger geopolitical tensions support the view that international political economy factors may play a role driving gold price. In same time post-crisis global economic uncer­tainty and expansion of liquidity affect by itself. The purpose article is find which factor most important taking into account assumption macrofinancial conditions assets prices yet real economy. Results. We consider competitive approaches on factors: politi­cal economy, safe haven effect, hedging against monetary shocks, with negative beta. reserves accumulation ideas reflected in literature about factors. time, fraction exchange didn’t change sub­stantially For empirical test four groups were chosen. Each them are proxy for tensions, policy uncertainty, accumulation, / financial US. It found inter­national not valid. uncertainty form low long-term US interest rates accumulation. Conclusions. drivers side. overvalued.