Volume : V, Issue : VI, June - 2016

Dynamic Relationship between Gold Prices and Stock prices: A Study in Indian Context

Mohd. Musavvir Ali

Abstract :

 The stock markets of a country become more sensitive to both domestic and external factors, and one such factor is the price of gold. There is an inverse relationship between gold price and dollar. the co–movement of gold prices and stock prices even during the period global financial crisis and thereafter. Indians have started considering gold not only as jewellery but also an important mode of investment like investment in bonds and equities. During the period of global financial crisis, stock markets crashed but gold price continues to increase in India. Unlike stock, the extent of holding of gold in India is widespread, though retail participation in the Stock Markets has gone up in the last few years. However, Indians have started considering gold not only as jewellery but also an important mode of investment like investment in bonds and equities. Perhaps, this explains the co–movement of gold prices and stock prices even during the period global financial crisis and thereafter.

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Article: Download PDF   DOI : 10.36106/ijsr  

Cite This Article:

Mohd. Musavvir Ali Dynamic Relationship between Gold Prices and Stock prices: A Study in Indian Context International Journal of Scientific Research, Vol.5, Issue : 6 JUNE 2016

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