Impact of exchange rate and foreign exchange gold reserve on prices of gold

Dr. Anu

doi:10.55524/ijirem.2022.9.6.5

Abstract

Gold has maintained its existence in Indian economy since centuries and there is no need for explaining the importance of this yellow metal in Indian culture as this valuable commodity always has a significant economic effect worldwide. This precious metal has marked a land mark upward trend in terms of prices after phase of recession in 2008 and early 2009 in global economy. Gold has emerged as safe haven for investment due to downfall of equity markets in recent years. Beginning of new millennium has witnessed a period where prices of this yellow metal started to climb robustly on a continue basis. Gold has been treated as hedge against inflation and exchange rate fluctuations. In the light of above scenario, this paper has analyzed the impact of exchange rate and foreign exchange reserve on gold prices.

Keywords

Exchange Rate, Foreign Exchange Reserve, Recession, Inflation

Reference

Dr. Sindhu (2013). A study on impact of select factors on the price of Gold, IOSR Journal of Business and Management (IOSR-JBM) e-ISSN: 2278-487X.Volume 8, Issue 4 (Mar. - Apr. 2013), PP 84-93 Retrieved on August 30, 2022 from https://www.iosrjournals.org/iosr-jbm/papers/Vol8-issue4/I0848493.pdf
G. Rejikumar , Chellai Fatih, Monika Devi, Umme Habibah Rahman, S.S. Das , Mostafa Abotaleb , P. Mishra (2021). Structural Analysis of Indian Gold Exports: Perspectives for Trade Policy Development, J. Math. Comput. Sci. 11 (2021), No. 4, 4042-4066, ISSN: 1927-5307,Retrieved on August 29, 2022 from https://www.researchgate.net/publication/351852858 _STRUCTURAL_ANALYSIS_OF_INDIAN_GOLD_EXPORTS_PERSPECTIVES_FOR_TRADE_POLICY_DEVELOPMENT/link/60ad3430458515bfb0a30498/ download
Li Lili & Diao Chengmei (2013). Research of the Influence of Macro-Economic Factors on the Price of Gold, Procedia Computer Science 17 (2013) 737 – 743, Retrieved on August 29, 2022 from https: / / www.sciencedirect.com/science/article/pii/S1877050 913002287
Naliniprava Tripathi (2016) A Study on Dynamic Relationship between Gold Price and Stock market Price in India, n European Journal of Economics, Finance and Administrative Sciences · Issue 88, August 2016 Retrieved

on August 28, 2022 from https://www.researchgate.net/public atio n/30 62 62190_A_Study_on_Dynamic_Relationship_between_Gold_Price_and_Stock_Market_P rice_in_India /link/60aa53d929 9bf1 031fc1d9e6/download

Nigel Desebrock (n.d.) An Introduction to the Indian Gold Market, Grendon International Research Pty Ltd, Published by Virtual Metals Research & Consulting Ltd. Retrieved from

www.goldbarsworldwide.com/PDF/NR_1_Indian_Gold_Book.pdf on August 29, 2022

NITI Aayog (2018). Transforming India’s Gold Market, Report of the Committee, NITI Aayog, Retrieved on August 29, 2022 from https://www.niti.gov.in/sites/default/files/2019-06/Report _Go ldMarket.pdf
Prerana Baber , Ruturaj Baber & Dr. George Thomas (2013). Factors affecting Gold prices: a case study of India, Retrieved on August 29, 2022 from https://www.researchgate.net/publication/236003986_Factors_Affecting_ Gold_Prices_A_Case_Study_of_India/link/5cf5485b299bf1fb18560ad7/download
Shahriar Shafiee & Erkan Topal (2010) An overview of global gold market and gold price forecasting, Resource Policy, 35(2010) 178-189 Retrieved from https://sites.ualberta.ca/~jbb/files/Global%20gold%20market.pdf
Soumya Sharma (2018) Determinants of Gold Prices In India, IJRAR December 2018, Volume 5, Issue 4, Retrieved on August 29, 2022 from https://www.ijrar.org/papers/IJRAR1944788.pdf
S.Venkata Seshaiah & Aviral kumar Tiwari (2017). Evaluation of Gold Market in India and Its Price Determinants, Applied Econometrics and International Development, Vol. 17-1
Y.V Reddy (N.D) Gold in the Indian Economic System, Retrieved on August 29, 2022 from https://rbidocs. rbi.org.in/rdocs /speeches/pd fs/7948. pdf
Zaeem-Al Ehsan (n.d): A Vector Error Correction model analysis of gold prices- how will COVID-19 impact the price of gold? Retrieved on August 18, 2022 from https://papers.ssrn.com/sol3/papers.cf m?abstractid =3644893

Cites this article as

[Dr. Anu (2022), Impact of exchange rate and foreign exchange gold reserve on prices of gold, International Journal of Innovative Research in Engineering & Management (IJIREM), Vol-9, Issue-6, Page No-31-35], (ISSN 2347 - 5552). www.ijirem.org