The Double Nature of the Gold Price

This paper initially analyzes the constitution of gold price by Ensemble Empirical Mode Decomposition (EEMD) with a data span of 1969-2014. We decompose and categorize the change of the gold price by time frequency into three aspects: high frequency portion, low frequency portion and trend portion. After related high frequency portion and trend portion with gold’s commodity property, and connected low frequency portion with gold’s monetary property, we offer a novel statistical perspective on interpreting gold’s double nature and price change in the last 45 years.