The results clearly demonstrate that the news sentiment-market
return relationship is affected by markets where inventory,
margin calls, and position limits constrain net trader positions.
The results have implications for academics and market practitioners
seeking to understand the relationship between news sentiment
and market movements, together with the validity of the
existing news analytics software. The results may also be of interest
to investors who are considering the placement of assets into
the gold market. If news sentiment data could be computed for a
longer time period, it would be of interest to consider whether
the results concerning the business cycle are applicable to a greater
range of recessionary periods (as in Garcia (2013)) or just the
recent Global Financial Crisis related recession of 2007–2009.
Additionally, this work may be extended to other futures markets
and it may be interesting to test the implementation of simple
trading strategies based on the reported results.