Gold as an Investment: Analyzing the Impact of Macro Variables on Gold Prices
Mohamed, Sahra (2025)
2025
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Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:amk-2025121636891
https://urn.fi/URN:NBN:fi:amk-2025121636891
Tiivistelmä
The purpose of this thesis is to investigate how four macroeconomic factors affect the price of gold. The variables used are inflation, interest rates, the U.S. dollar index and the volatility index (VIX). The study employs annual data from 1990-2024 and based on these figures, a linear regression analysis is performed to estimate gold prices. In addition, the theoretical framework of the study examines the role of gold and how gold has been a part of the economy historically throughout time, using historical data.
The results show that only the VIX has a statistically significant positive effect on the price of gold. The other variables had no significant effect. The results suggest that the price of gold is closely related to market conditions, especially to stress factors. Overall, the results support the view that the price of gold responds mainly to market uncertainty and not to inflation or monetary policy during the study period.
The results show that only the VIX has a statistically significant positive effect on the price of gold. The other variables had no significant effect. The results suggest that the price of gold is closely related to market conditions, especially to stress factors. Overall, the results support the view that the price of gold responds mainly to market uncertainty and not to inflation or monetary policy during the study period.