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The analysis of factors affecting global gold price

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  • Qian, Yao
  • Ralescu, Dan A.
  • Zhang, Bo

Abstract

As one of the most widely purchased investment products for global investors, the price of gold is increasingly attracting attention. This paper analyzes and summarizes the various factors that affect global gold price. A reverse process of response surface methodology(RSM) is first used to evaluate the impact of six different factors(namely, the dollar index, the federal funds rate, CPI, exchange rate, oil price and S&P500) on the gold price. The results show that all factors have a negative impact on the price of gold except CPI. Furthermore, the impact of CPI and Oil price on response variable is not significant at the 5% significance level, which also makes the interaction effect involving these two factors more complicated.

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  • Qian, Yao & Ralescu, Dan A. & Zhang, Bo, 2019. "The analysis of factors affecting global gold price," Resources Policy, Elsevier, vol. 64(C).
    • Handle: RePEc:eee:jrpoli:v:64:y:2019:i:c:s0301420719304337
    DOI: 10.1016/j.resourpol.2019.101478
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