Mutual influence of prices in the world market of precious metals

Subject. The article discusses precious metal prices, namely, prices for gold, silver, platinum, and palladium. Objectives. The purpose is to assess factors influencing precious metal prices in the world market, focusing on mutual influence of prices. Methods. The study employs a seasonal autoregressive integrated moving average with exogenous regressors (SARIMAX) econometric model. Results. The obtained econometric estimates for the four models (four precious metals) based on the statistics for 2014–2023 enabled to highlight one factor that is significant for the said precious metals pricing, S&P500 index. Moreover, we found that some of the precious metals are influenced by the USA dollar exchange rate, Purchasing Managers Index (PMI), and inflation. The gold price is a factor for pricing of all the precious metals, and they influence the price of gold at the same time. The mutual influence of prices of other precious metals is observed in all cases, though with different degree. Conclusions. Precious metal prices are influenced by different macroeconomics and financial market indices. Mutual influence of precious metal prices on world financial markets can be explained by investors’ attitude to them as a whole group of financial instruments. We suppose that this fact may strengthen the role of psychological aspects of investing in this part of the financial market.