Supply and Demand Power of Gold Influencing Gold Pricing

Abstract

This research analysis establishes a relationship between historical gold prices and two independent variables: the supply and the demand for gold. It goes on to determine the robustness of this relationship, and to explain the extent and degree of variance in the relationship by computing the coefficient of correlation and the coefficient of determination using two different methods. The results show a correlation between gold prices and gold supply, but a lower correlation between gold prices and gold demand. TOPICS: Wealth management, other real assets Key Findings • How demand influences price of gold. • How supply influences price of gold. • Regression coefficients of supply and demand for pricing.