Gold

Table of Contents

Abstract 3

CHAPTER 1 4

INTRODUCTION 4

1.0 OVERVIEW INVESTMENT IN MALAYSIA 4

1.1 OVERVIEW INVESTMENT GOLD IN MALAYSIA 6

1.2 PROBLEM STATEMENT 8

1.3 RESEARCH OBJECTIVE 10

1.4 HYPHOTESIS 10

CHAPTER 2 12

2.0 LITERATURE REVIEW 12

2.1 PRICE OF GOLD 15

2.2 INFLATION RATE 17

2.3 INTEREST RATE 19

2.4 EXCHANGE RATE 22

CHAPTER 3 26

3.0 RESEARCH METHODOLOGY 26

3.1 Research Design 26

3.2 Data Collection Method 26

3.3 Data Analysis 26

CHAPTER 4 27

FINDINGS AND ANALYSIS 27

4.0 INTRODUCTION 27

4.1 ANALYSIS 27

Financial imbalances 33

Muted impact 34

4.2 DESCRIPTIVE STATISTICS 35

4.3 Pearson correlation 35

4.4 Correlation of coefficient (R) 36

4.5 Coefficient of determination (R Square) 36

4.6 Regression Model 37

4.7 Interpretation of Regression Coefficient 38

4.8 T-Statistics 38

4.9 F-Statistics 39

CHAPTER 5 40

5.0 CONCLUSION 40

Abstract

The investors always look for the various investment avenues which increase their risk-adjusted returns and add diversification. Since ages, gold is preferred as the one of the major investment option. The prices of the gold are increasing and the price of the gold is affected by the various factors. This paper is basically focused on the factors like exchange rate of US dollar, Consumer Price Index and inflation rate. Each of the factors is studied with the gold prices. The relationship between the factor and the gold prices is emphasized in this paper.

CHAPTER 1

INTRODUCTION

1.0 OVERVIEW INVESTMENT IN MALAYSIA

According to Wikipedia, Investment is putting money into something with the hope of profit. More specifically, investment is the commitment of money or capital to the purchase of financial instruments or other assets so as to gain profitable returns in the form of interest, income (dividends), or appreciation (capital gains) of the value of the instrument.

In Malaysia, there are a lot of type investment that...