Determinants of gold price in Malaysia/ Nur Adrianna Mohd Kamaruzaman

• Main Author: Mohd Kamaruzaman, Nur Adrianna
• Format: Thesis
• Language: English
• Published: 2018
• Subjects: Macroeconomics; Precious metals. Bullion; Investment, capital formation, speculation
• Online Access: https://ir.uitm.edu.my/id/eprint/57500/1/57500.pdf; https://ir.uitm.edu.my/id/eprint/57500/

Gold has been used as money and most popular investment among all precious metal. Because of the special properties it could be used as a hedge against economic, political, social and currency. According to Wang (2013), gold is one of the hedging tools. In addition, gold investments are known as most protected form of speculation. Tun. Dr. Mahathir Mohamad become a first prime minister in encourage the use of gold dinar in international trade. Gold price is affected by macroeconomics factors such as crude oil price, inflation rate, exchange rate, Gross Domestic Product(GDP) (Wang,2013). Gold is the most valuable item and easy to carry and tangible item. According to Worthington and Pahlavani (2006), gold has attracted people since thousands of years ago until this day unlike most other commodities, gold is a metal that is durable, easy to carry as well as universally accepted and validated. The time series data are been using for this study. Moreover, multiple linear regressions are used in this research to investigate the relationship between dependent variable which is gold price and the independent variables which is inflation rate, exchange rate, gross domestic product and crude palm oil price. The main findings suggest that the gold price is determined by these variables. The findings for this study are exchange rates and crude oil price shows a positive significant relationship on the gold price while the inflation rate and gross domestic product shows a negative relationship on the gold price