An Empirical Study on Factors Influencing Gold Rate in India

Abstract

The goal of the study is to identify the factors that consciously affect Indian gold prices. Due to its historical significance as a financial and cultural symbol in India, it is imperative to comprehend the primary factors influencing fluctuations in gold prices. Using a comprehensive methodology, the study combines market-specific and macroeconomic data to analyse the evolution of gold prices. The study begins by analysing earlier studies on the factors influencing the price of gold in order to pinpoint the crucial elements. The study also looks at the unique aspects of the Indian context, including local demand trends, festival seasons, and governmental regulations, inflation, interest rates, global market trends, exchange rate, investor sentiment and speculation as well as import/export rules. Knowing the factors influencing gold prices in India can aid in the forecasting of price fluctuations, the creation of suitable regulations by governments, and the making of educated decisions by investors.