*Course Co-ordinator, School of Commerce & Co-ordinator Minority Cell, Devi Ahilya Vishwavidyalaya, Indore (M.P.) India
**Junior Research Fellow Funded by UGC, New Delhi at School of Commerce, Devi Ahilya Vishwavidyalaya, Indore (M.P.) India
***Head, School of Commerce, Devi Ahilya Vishwavidyalaya, Indore (M.P.) India
Online published on 11 August, 2014.
The present paper attempts to investigate the existence of causal relationship between gold prices in India and various other global factors vis-à-vis Foreign Institutional Investment (FII), Standard & Poor's 500 (S&P-500), Foreign Exchange Reserves(Forex Reserves), Exchange rate (USD) & Crude oil price. For the purpose of study monthly time series data of abovementioned variables have been studied covering the period of nine years from April, 2004 to March, 2013. In order to examine relationship among these variables Unit Root test, Co-integration test, Granger Causality test have been employed using E-Views 5 statistical software package. The results suggest long run integration between these variables further it was found that all abovementioned global factors do not Granger Cause Gold price in India however it was found that Gold price Granger Cause Exchange Rate (USD) and Crude oil price during the period under study.
Crude oil, FII, FOREX, Gold, S&P-500, USD, Unit root, Granger Causality test
