Impact Of Macroeconomic Variables On Gold Price In India: An Empirical Examination

Abstract

Macroeconomic indicators show an economy's health and also determine the flow of investments. The uncertainty of macroeconomic variables has a substantial impact on stock and commodities markets, causing price volatility. Gold prices are likely to be influenced by macroeconomic volatility, and vice versa. The strong association between macroeconomic indicators and gold prices must be studied and examined because gold is one of the most valuable financial assets that may be used as a hedge against inflation. The purpose of this research is to use a multiple regression model to investigate the causal impact of macroeconomic variables on gold prices. Annual data was utilised to analyse the relationship between inflation rates, interest rates, gold reserves, fiscal deficit and GDP with gold prices over an eleven year period, from 2010 to 2021. The researchers observed a strong association between macroeconomic indicators and gold prices