Published Online:October 2024
Product Name:The IUP Journal of Applied Finance
Product Type:Article
Product Code:IJAF011024
Author Name:Shobha B G
Availability:YES
Subject/Domain:Finance
Download Format:PDF
Pages:5-18
This study provides detailed insights on the impact of exchange rates on gold and silver prices in local and international markets from 1971 to 2023. The ways in which variations in exchange rates impact the pricing of various precious metals are examined using descriptive analysis, regression, and correlation approaches. The analysis covers the following major currencies: SDR, US dollar, Japanese yen, pound sterling, and Deutsche mark/euro. The findings reveal that there is a positive relationship between the exchange rates and the prices of gold and silver in Mumbai and London markets. The findings also emphasize the need for policies that reduce the effects of fluctuations in exchange rates on gold and silver markets.
The bullion market (i.e., investment in gold and other precious metals) is traditionally viewed as a safe haven against stock market uncertainty (Sensoy, 2013). High volatility in stock market often forces investors to look for alternative asset classes in their portfolio.