IMPACT OF INFLATION ON GOLD PRICES: EVIDENCE FROM TIME-SERIES ANALYSIS IN INDIA

Gold is said to be one of the important
investments. It is popularity known as a safe investment
when the economy is in an unstable condition. Cost of gold
is affected with large number of economic factors
including inflation, interest rate and currency etc. This
study examines how gold value is influenced by key
macroeconomic factor including Consumer Price Index
(CPI), borrowing rate and USD/INR [3],[8]. Data analysis
tool which is implemented in Python-based tools are used
to collect, process and study the data. The dataset is first
preprocessed and the analysed using exploratory data
analysis techniques. Connection and graphs are used to
understand the patterns and trend between gold price and
macroeconomic factor. Also, interesting results of the
project are the effect of interest rates of how investor
decides to invest in the gold.
Keywords- Gold price, Economic factor, Inflation,
Exchange rate, Interest rate, Time Series analysis
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