Geography and Regional Planning

Geography and Regional Planning

Analyzing the impact of geopolitical shocks on the behavior of the dollar index and gold price: An integrated approach in economics and regional planning

Document Type : Original Article

Authors
1 Department of Economics, Faculty of Humanities & Social Sciences, Ardakan University, Ardakan, Iran
2 Graduated from Political Geography at Kharazmi University
10.22034/jgeoq.2026.584407.4469
Abstract
The global economy has witnessed increasing complexity and interdependence between markets in recent decades. Meanwhile, geopolitical instability, as a major external factor, has the potential to cause widespread volatility in financial markets. This study examines the complex interaction between geopolitical risks, the US dollar index, and the price of gold over the period 2000-2024. Gold has always been considered a traditional safe haven during economic and political crises, but its relationship with macroeconomic variables and political risks requires careful analysis. The aim of this study is to measure the direct and long-term impact of geopolitical risks and the inverse effect of the dollar index on the price of gold. The simulation results show that increasing geopolitical risk has a positive and significant impact on the price of gold, while strengthening the value of the dollar leads to a decrease in the price of gold. These findings have important implications for investment management and risk analysis in global markets.
Keywords

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