Examining selected macroeconomic factors affecting gold price fluctuations Malaysia / Nur Yusahira Yusoff

In the recently year, gold price had been triggered the attention from the academic researchers due to the high price in the market. Many researches had been done related to gold in the past such as the role of gold and gold as the inflationary hedge. The gold commodity has always been eyed as a safe-haven investment and a hedge against inflation and financial instability, attracting investors during periods of stock market volatility and macroeconomic turbulences. In fact, and after several years of relative stability, gold prices have soared throughout the global financial crisis era, peaking at around $1,900/ounce in September 2011. Besides, the important characteristics of gold hedge against uncertainty of economic condition had made gold served as an important investment tools in the market. The gold price is being fluctuate since 1970 until 2010 due to some factors. This research will be focused on examine the selected macroeconomic factors affecting gold price fluctuation in Malaysia. Multiple Linear Regression Model was employed in the entire regression models constructed in the study to determine significant relationship between dependent and independent variable. Time series data which is consist of 14 years of quarterly basis was collected to get a statistics of data based on the research conducted. Basically, quarterly basis data are collected from Data Stream. Data collected is consist of Gold Price, Crude Oil Price, Gross Domestic Product (GDP)and lastly is Inflation Rate(CPI). This data was collected according to the country selected which is Malaysia. The data would be gathered within 7 years period which is from 2003 to until second quarter of 2017.
Keywords: GDP, CPI, Crude Oil Price, Multiple Linear Regression, Data Stream, Gold
Price