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Mind The Gap: Psychological Barriers In Gold And Silver Prices

O'Connor, Fergal and Lucey, Michael (2016) Mind The Gap: Psychological Barriers In Gold And Silver Prices. Finance Research Letters, 17 (C). pp. 135-140.

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Abstract

This study tests whether psychological barriers exist around key reference points in gold and silver prices, namely numbers ending in 0 (e.g. $450) and 00 (e.g. $200). Initial observations and tests show gold prices fix less frequently on values ending in 0 and 00, suggesting barriers at these levels which manifest as gaps in the frequency distributions. Statistical tests find support for barriers at numbers ending in 0 and 00 for gold. While initial observations and tests suggest silver prices are not uniformly distributed, there is no statistically significant evidence to support that barriers exist at either 0 or 00.

Item Type: Article
Status: Published
DOI: https://doi.org/10.1016/j.frl.2016.03.009
Subjects: H Social Sciences > HB Economic Theory
H Social Sciences > HG Finance
School/Department: York Business School
URI: http://ray.yorksj.ac.uk/id/eprint/1438

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