News Sentiment in the Gold Futures Market

This article utilises commodity specific news sentiment data provided by Thomson Reuters News Analytics to examine the relationship between news sentiment and returns in the gold futures market over the period 2003–2012. There is an asymmetric response to news releases with negative news sentiment i...

Full description

Bibliographic Details
Main Author: Smales, Lee
Format: Journal Article
Published: Elsevier 2014
Subjects:
Online Access:http://hdl.handle.net/20.500.11937/15771
_version_ 1848748983749443584
author Smales, Lee
author_facet Smales, Lee
author_sort Smales, Lee
building Curtin Institutional Repository
collection Online Access
description This article utilises commodity specific news sentiment data provided by Thomson Reuters News Analytics to examine the relationship between news sentiment and returns in the gold futures market over the period 2003–2012. There is an asymmetric response to news releases with negative news sentiment invoking a greater contemporaneous response in returns of gold futures. There is evidence to support the supposition that net trader positions significantly impact the identified sentiment relationship with the effect greatest when traders are holding positions contrary to their natural position; this may be explained by constraints imposed on traders in terms of credit availability, exchange imposed limits, or inventory required for physical settlement. Recession, and associated changes in credit costs, impact the size of net positions and the news sentiment/return relationship.
first_indexed 2025-11-14T07:13:43Z
format Journal Article
id curtin-20.500.11937-15771
institution Curtin University Malaysia
institution_category Local University
last_indexed 2025-11-14T07:13:43Z
publishDate 2014
publisher Elsevier
recordtype eprints
repository_type Digital Repository
spelling curtin-20.500.11937-157712019-02-19T04:26:00Z News Sentiment in the Gold Futures Market Smales, Lee Information Futures markets Trading behaviour COMEX Gold News sentiment This article utilises commodity specific news sentiment data provided by Thomson Reuters News Analytics to examine the relationship between news sentiment and returns in the gold futures market over the period 2003–2012. There is an asymmetric response to news releases with negative news sentiment invoking a greater contemporaneous response in returns of gold futures. There is evidence to support the supposition that net trader positions significantly impact the identified sentiment relationship with the effect greatest when traders are holding positions contrary to their natural position; this may be explained by constraints imposed on traders in terms of credit availability, exchange imposed limits, or inventory required for physical settlement. Recession, and associated changes in credit costs, impact the size of net positions and the news sentiment/return relationship. 2014 Journal Article http://hdl.handle.net/20.500.11937/15771 10.1016/j.jbankfin.2014.09.006 Elsevier fulltext
spellingShingle Information
Futures markets
Trading behaviour
COMEX
Gold
News sentiment
Smales, Lee
News Sentiment in the Gold Futures Market
title News Sentiment in the Gold Futures Market
title_full News Sentiment in the Gold Futures Market
title_fullStr News Sentiment in the Gold Futures Market
title_full_unstemmed News Sentiment in the Gold Futures Market
title_short News Sentiment in the Gold Futures Market
title_sort news sentiment in the gold futures market
topic Information
Futures markets
Trading behaviour
COMEX
Gold
News sentiment
url http://hdl.handle.net/20.500.11937/15771