The application of gold price, interest rates and inflation Expectations in capital markets
The aim of this research is to determine a forecasting model of the price of gold in relation to the rate of interest from 1971–2013 that would benefit wealth managers in their forward interpretation of capital market expectations. It is not a model for market makers, since the price-setting domina...
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| Format: | Article |
| Language: | English |
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Canadian Center of Science and Education
2015
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| Online Access: | http://irep.iium.edu.my/44673/ http://irep.iium.edu.my/44673/ http://irep.iium.edu.my/44673/ http://irep.iium.edu.my/44673/1/Abdullah%2C_15-02%2C_Gold_Price.pdf |
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eprints |
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iium-446732015-09-14T01:45:49Z http://irep.iium.edu.my/44673/ The application of gold price, interest rates and inflation Expectations in capital markets Abdullah, Adam Abu Bakar, Mohd Jaffri HG Finance The aim of this research is to determine a forecasting model of the price of gold in relation to the rate of interest from 1971–2013 that would benefit wealth managers in their forward interpretation of capital market expectations. It is not a model for market makers, since the price-setting dominance of banks in the physical as well as derivative markets presents a problem for any economic agent participating in these markets. Nonetheless, the ability to understand the variability of gold, interest rates and prices would clearly enhance financial planning and investor performance. This research models a full population of the price of gold with the rate of interest, in order to assess what impact a change in the interest rate would have on a change in the gold price (and vice versa). In developing a model price of gold that is strongly correlated with the actual price, the outcome of the research expects to show that not only is the interest rate and the gold price manipulated in relation to each other, but would also affirm the Gibson’s Paradox, that real gold is inversely related with the real interest rate, so that real prices are positively related with the real interest rate. Canadian Center of Science and Education 2015-01-25 Article PeerReviewed application/pdf en http://irep.iium.edu.my/44673/1/Abdullah%2C_15-02%2C_Gold_Price.pdf Abdullah, Adam and Abu Bakar, Mohd Jaffri (2015) The application of gold price, interest rates and inflation Expectations in capital markets. International Journal of Economics and Finance, 7 (2). pp. 293-302. ISSN 1916-971X http://dx.doi.org/10.5539/ijef.v7n2p293 10.5539/ijef.v7n2p293 |
| repository_type |
Digital Repository |
| institution_category |
Local University |
| institution |
International Islamic University Malaysia |
| building |
IIUM Repository |
| collection |
Online Access |
| language |
English |
| topic |
HG Finance |
| spellingShingle |
HG Finance Abdullah, Adam Abu Bakar, Mohd Jaffri The application of gold price, interest rates and inflation Expectations in capital markets |
| description |
The aim of this research is to determine a forecasting model of the price of gold in relation to the rate of interest from 1971–2013 that would benefit wealth managers in their forward interpretation of capital market
expectations. It is not a model for market makers, since the price-setting dominance of banks in the physical as
well as derivative markets presents a problem for any economic agent participating in these markets.
Nonetheless, the ability to understand the variability of gold, interest rates and prices would clearly enhance
financial planning and investor performance. This research models a full population of the price of gold with the
rate of interest, in order to assess what impact a change in the interest rate would have on a change in the gold
price (and vice versa). In developing a model price of gold that is strongly correlated with the actual price, the
outcome of the research expects to show that not only is the interest rate and the gold price manipulated in
relation to each other, but would also affirm the Gibson’s Paradox, that real gold is inversely related with the real
interest rate, so that real prices are positively related with the real interest rate. |
| format |
Article |
| author |
Abdullah, Adam Abu Bakar, Mohd Jaffri |
| author_facet |
Abdullah, Adam Abu Bakar, Mohd Jaffri |
| author_sort |
Abdullah, Adam |
| title |
The application of gold price, interest rates and inflation
Expectations in capital markets
|
| title_short |
The application of gold price, interest rates and inflation
Expectations in capital markets
|
| title_full |
The application of gold price, interest rates and inflation
Expectations in capital markets
|
| title_fullStr |
The application of gold price, interest rates and inflation
Expectations in capital markets
|
| title_full_unstemmed |
The application of gold price, interest rates and inflation
Expectations in capital markets
|
| title_sort |
application of gold price, interest rates and inflation
expectations in capital markets |
| publisher |
Canadian Center of Science and Education |
| publishDate |
2015 |
| url |
http://irep.iium.edu.my/44673/ http://irep.iium.edu.my/44673/ http://irep.iium.edu.my/44673/ http://irep.iium.edu.my/44673/1/Abdullah%2C_15-02%2C_Gold_Price.pdf |
| first_indexed |
2023-09-18T21:03:29Z |
| last_indexed |
2023-09-18T21:03:29Z |
| _version_ |
1777410779346108416 |