Gold: What Are The Factors Influence The Price Movement

• Main Authors: Siti Aisyah Nawawi, Rabihah Nawawi, Wan Masnieza Wan Mustapha, Siti Norbaya Mohd Rashid, Fadhilah Mohd Ishak @ Zainudin
• Format: Conference or Workshop Item
• Language: English
• Published: 2012
• Online Access: http://discol.umk.edu.my/id/eprint/9186/1/Gold%20What%20Are%20The%20Factors%20Influence%20The%20Price%20Movement.pdf; http://discol.umk.edu.my/id/eprint/9186/
• Institution: Universiti Malaysia Kelantan

Gold is one of the most useful mineral mines from the earth. Gold is not only used in jewelry and technology sectors but as an investment assets in the financial market. As the gold price has fluctuating price, it would be of interest to investigate the causes of the movements. In this study, the factors that influenced the gold price are investigated. The influential factors are oil price, US dollar, central bank gold reserve and time. This study involves secondary data for 20 years based on monthly basis. Since Linear regression analysis is a commonly used statistical technique in all fields of engineering, science, financial and management, this study employed a multiple linear regression model with gold price as dependent variable and oil price, US dollar, central bank gold reserve and time as independent variables. This analysis enables to predict the value of a dependent variable from a set of independent variables. Results of the analysis show that US dollar, central bank gold reserve and time are associated with the movement of the gold price while oil price is not related with the movement of gold price. The results of this study also provide the best prediction on the gold price for the gold‘s user.