Modelling the volatility of the global gold price by applying the ARCH/GARCH models

The purpose of this article is to analyse the trend global gold price yields and volatility with aim making effective financial decisions about investments in precious metal, by applying comparing results ARCH GARCH competing models, using lowest values chosen information criteria. models are intended for time series' analysis, observed instability conditional variance. Gold usually has function a safe haven, also serving as warrantor monetary stability, especially times crisis. On example 1,151 daily observations on yield rates, E-GARCH model was applied, which suggest investors be cautious their decision-making since impact negative shocks (losses) strong long-memory effect, highly risky, bad economic circumstances.