Analysis of driving factors of gold price movement
Zejin Du
Co-Presenters: Individual Presentation
College: College of Business and Public Management
Major: Finance
Faculty Research Mentor: Huaibing Yu
Abstract:
As a traditional safe-haven asset, gold's price fluctuations are deeply affected by the global economy, political turmoil and changes in financial markets. In recent years, as global economic uncertainty has increased, the volatility of gold prices has also become more significant. The purpose of this study is to explore the relationship between gold prices and various macroeconomic factors, in particular the impact of the US dollar exchange rate, inflation rates, and central bank monetary policies (such as changes in interest rates) on gold prices. By performing a regression analysis of historical data on gold prices and these economic variables over the past ten years, this study reveals how gold prices exhibit different dynamics over different economic cycles. Especially in times of economic recession or financial crisis, gold's performance as a safe haven asset is particularly prominent. Through these analyses, the research aims to provide investors with insights into the gold market and help them make more rational investment decisions in an uncertain economic environment.