An examination of volatility in metals markets

The purpose of this study is to examine the volatility behavior of precious metals (gold, silver, platinum, palladium) and industrial metals (nickel, copper, zinc, aluminum). In addition in this study volatility of base metals and precious metals indices are examined. The data period of this study covers January 1992 and February 2021. GARCH models are employed in order to examine volatility. The results of standard GARCH model indicate that the volatility behavior of precious metals and industrial metals differs. Interest rate, VIX and WIP Index variables have different effects in different markets. These findings are expected to have implications for both policy makers and investors.