Gold Fluctuation
GOLD FLUCTUATION AND ITS IMPACT ON INDIAN ECONOMY
INTRODUCTION
History of gold
International monetary system - gold or silver as a means of exchange.
Gold is one of the most valuable economic indicators.
Gold’s price elasticity is negative.
Rising gold prices can change destiny of many unprofitable mines and turn them into a very successful business.
Gold is a safe investment.
Gold prices have been determined more by landed costs and by the rupee-dollar exchange rate.
Factors affecting gold price fluctuation
Currency Inflation:
When the supply of currency is inflated, the price of gold increases as the per-unit value of the currency declines.
During times of monetary contraction (i.e. when currency is “soaked up”), the price of gold goes down.
Central Banks:
Central banks can decide to sell a portion of their reserves or buy more on the market limited to 400 tonnes.
Central banks influence the price of gold is through loan agreements with the central banks of other nations.
RBI now has gold reserves over $5bn.
Factors The Cause An Increase In Demand:
Times of political unrest and war leads to monetary expansion.
Mining production can also play a role.
Large deficits also support high gold prices.
OBJECTIVE
To review the fluctuation in the gold prices.
To review the factors that affects the gold prices.
To calculate the Compound Growth Rate and then forecast for the year 2015.
To review whether international review of gold reserve (foreign exchange reserve) affects the gold prices or not.
Data Analysis- Growth Rate
Growth rate chart
Price of gold and gold reserves
Analysis
ANOVA Test
Residual plot
RECOMENDATION
As a gold trader, the market fluctuations in the rate of gold shares and prices are sometimes difficult to keep up with, although it is your business!
It seems that things happen at the speed of light and it’s essential to be online and have access to the rate of gold on a minute-to-minute basis!
You can also review
INTRODUCTION
History of gold
International monetary system - gold or silver as a means of exchange.
Gold is one of the most valuable economic indicators.
Gold’s price elasticity is negative.
Rising gold prices can change destiny of many unprofitable mines and turn them into a very successful business.
Gold is a safe investment.
Gold prices have been determined more by landed costs and by the rupee-dollar exchange rate.
Factors affecting gold price fluctuation
Currency Inflation:
When the supply of currency is inflated, the price of gold increases as the per-unit value of the currency declines.
During times of monetary contraction (i.e. when currency is “soaked up”), the price of gold goes down.
Central Banks:
Central banks can decide to sell a portion of their reserves or buy more on the market limited to 400 tonnes.
Central banks influence the price of gold is through loan agreements with the central banks of other nations.
RBI now has gold reserves over $5bn.
Factors The Cause An Increase In Demand:
Times of political unrest and war leads to monetary expansion.
Mining production can also play a role.
Large deficits also support high gold prices.
OBJECTIVE
To review the fluctuation in the gold prices.
To review the factors that affects the gold prices.
To calculate the Compound Growth Rate and then forecast for the year 2015.
To review whether international review of gold reserve (foreign exchange reserve) affects the gold prices or not.
Data Analysis- Growth Rate
Growth rate chart
Price of gold and gold reserves
Analysis
ANOVA Test
Residual plot
RECOMENDATION
As a gold trader, the market fluctuations in the rate of gold shares and prices are sometimes difficult to keep up with, although it is your business!
It seems that things happen at the speed of light and it’s essential to be online and have access to the rate of gold on a minute-to-minute basis!
You can also review