The factors affecting gold price in Malaysia

Gold is a precious metal which serves as both financial and real assets. The value of gold in the society goes more than just economic, as it is also treasured as a storage and display of mammon and culture. In the long-run, its prices keep increasing due to the high demand and inadequate supply worldwide. However, in the short-run its price seems to be volatile due to various potential reasons. Therefore, this study was conducted to determine the factors influencing gold prices in Malaysia. Researchers investigate the relationship of dependent variable, gold price between the independent variables crude oil price, interest rate and stock market price. In order to achieve the objective, the researcher use annual data from year 1987 until 2016. From the analysis, the independent variables have significant relationship with gold price in Malaysia which indicates that crude oil price has positive relationship with gold price while interest rate and stock market price have negative relationship with gold price in Malaysia.