IMPACT OF MACROECONOMIC VARIABLES ON MARKET BEHAVIOUR OF PRECIOUS METALS (GOLD, SILVER AND PLATINUM) by

Abstract

The paper tries to identify the impact of macroeconomic variables on the precious metals. Further this paper attempts to investigate the relative influence of the factors affecting the precious metals. The macroeconomic variables used to conduct this study are: inflation rate, exchange rate, GDP, growth rate, real interest rate and interest rate. The precious metals used are: Gold, silver and platinum. The second part of the study focuses on the examination of the price (average price of a year) and quantity of these precious metals traded. Annual data ranging from 2009-2017 is considered. Primary hypothesis evaluates that whether these precious metals are dependent on the given macroeconomic variables or not. For establishing the relationship, regression analysis is used by using MS excel. The result shows that macroeconomic variables do have some impact on price of gold, quantity of gold traded, price of silver, quantity of silver traded, price of platinum, quantity of platinum traded.