The determinant of gold price in Malaysia / Nurhazirah Nabihah Wakiran

The aim of this study is to examine the factors that are influencing the gold price in Malaysia. In this study, the price of gold is chosen as the dependent variable, while the independent variables used are Gross Domestic Income (GDP), Crude Palm Oil (CPC), Exchange rate (ER), Interest Rate (IR) and Inflation Rate (INF). Annual data is gathered over the period 1981 to 2020. The data is gathered from data stream, world data bank and Bank Negara Malaysia. A multiple linear regression is used in this study. In addition, econometric tests are employed to observe the relationship of the economic variables to the price of gold in Malaysia such as unit root test, normality test, serial correlation, heteroscedasticity, covariance analysis, multicollinearity and ramsey reset test. Interactive software package E-view would be used for testing and analyzing the data collected. The expected result from this study is that there is a significant relationship between gold price in Malaysia with Exchange rate (ER), Interest Rate (IR) and Inflation Rate (INF). On the other hand, Gross Domestic Income (GDP) and Crude Palm Oil (CPO) has no significant relationship with the gold price in Malaysia.