The Determinants of Gold Prices in Malaysia

In: Business and Management

Submitted By sitinurulhuda
Words 3136
Pages 13
Journal of Advanced Management Science Vol. 2, No. 1, March 2014

The Determinants of Gold Prices in Malaysia
Siti Nurulhuda Ibrahim, Nurul Izzat Kamaruddin, and Rahayu Hasan
Universiti Teknologi MARA, Bandaraya Melaka, Malaysia Email: {Sitinur304, nrl_izzat, rahayuhasan}

Abstract—This paper analysed factors that affecting the prices of gold in Malaysia. The study used Multiple Linear Regression Model to determined significant relationship between dependent and independent variables, covering data for 10 years period which are from 2003 until 2012. The researcher used three independent variables that affect the prices of gold which are crude oil prices, inflation rates and exchange rates. The empirical results have found there is negatively significant relationship between inflation rates and exchange rates on gold prices, while a crude oil price is positively significant. The results of the study are valuable for both academic and investor. Index Terms—determinant, gold prices, crude oil prices, inflation rates, exchange rates

price and sell it at high price later on. Thus, this is why the factors that affect the gold price must be determined so that people may estimate the timing to buy, hold or sell the gold. This study is made to seek the proofs for the possible factors that affect the gold price in Malaysia. From this research, the most important or most influence factor can also be determined. Simply put, the findings for this research will bring benefit to individual, group as well as the government in analyzing the movement of the gold price. To discuss more about this topic, this research paper present the sensitivity of gold prices to the changes in the crude oil prices, inflation rates and exchange rates factor by taking 10 years data from 2003 until 2012. II. DATA AND METHODOLOGY



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