As a special commodity, gold possesses multiple features: as commodity, currency and hedging instrument. Its currency and hedging features are well manifested during the first stage of this financial crisis since 2007. However, the hedging feature of gold was hardly discussed before. The above...

In this paper, we derive a structural relationship between the gold price and the U.S. TIPS (Treasury Inflation-Protected Securities) yields under the fact that both the gold and the U.S. dollar are international currency anchors. The relationship can be interpreted as defining the fair value...