Analyzing Hedging Exchange Rate Risk in Gold Market

Gold acted as a variety of roles in portfolio investment. Why invest in gold? Gold can achieve wealth preservation, as tool to against inflation, it can also be used as a currency hedge. Gold has been utilized as an all-around acknowledged currency all through history. Since it can't be corrupted and it is nobody's obligation, gold can help investors hedge some of the risks associated with foreign assets. The paper proposes a multi-currency cross gold hedging strategy that minimizes the exchange risk. The study examines whether gold is used to hedge against exchange rate risks globally.