Asynchronous market efficiency in gold and silver markets: A local currency lens

Rana, Hafiz Muhammad Usman and O'Connor, Fergal and Yerushalmi, Erez and Kim, Jae H. (2026) Asynchronous market efficiency in gold and silver markets: A local currency lens. Finance Research Letters, 103. p. 110172. ISSN 1544-6123

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Abstract

This study examines the Adaptive Market Hypothesis (AMH) in locally denominated precious metals markets across six countries, where prior research has focused on U.S. dollar-denominated prices. Using linear and nonlinear methods: the Automatic Portmanteau, Wild Bootstrap Automatic Variance Ratio, and Generalised Spectral tests, we analyse the evolving efficiency of these markets over time. Our findings reveal that market inefficiencies fluctuate, driven by factors such as regulatory controls, cultural dynamics, and market structure. These inefficiencies create predictable trading opportunities, particularly in the gold-Swiss sector, and underscore the importance of localised portfolio risk management strategies.

Item Type:	Article
Identification Number:	10.1016/j.frl.2026.110172
Dates:	Date Event 12 May 2026 Accepted 13 May 2026 Published Online
Uncontrolled Keywords:	Adaptive markets hypothesis, Local currencies, Asynchronous efficiency, Precious metals
Subjects:	CAH15 - social sciences > CAH15-02 - economics > CAH15-02-01 - economics
Divisions:	Business School > Accountancy, Finance and Economics Business School > Accountancy, Finance and Economics > Centre for Accountancy Finance and Economics
Depositing User:	Gemma Tonks
Date Deposited:	18 May 2026 09:57
Last Modified:	18 May 2026 09:57
URI:	https://www.open-access.bcu.ac.uk/id/eprint/17051

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