AN INVESTIGATION INTO THE DYNAMIC RELATIONSHIP BETWEEN GOLD PRICES AND STOCK MARKET INDICES (NIFTY and SENSEX)

Abstract

The study effort aims to determine the correlation between gold prices and stock exchange indices, specifically the NIFTY and SENSEX. This project is being prepared using secondary data. The project is broken up into six chapters: the first one introduces NIFTY, SENSEX, and gold; the second chapter reviews the literature; the third chapter reports on the study methodology—descriptive research design—that is being employed. The fourth chapter includes citations to the different sources that provided the data for the study, along with analysis methods like regression and correlation that were applied to the whole data and further discoveries from descriptive research. The conclusion that can be reached after carrying out this in-depth research is stated in the fifth chapter. The findings after doing the research can be drawn as follows: A positive correlation has been detected in gold prices and market movements andgold being the independent factor affects both NIFTY and SENSEX with 34.2% and 38.1% respectively.