DYNAMIC LINKAGE BETWEEN OIL PRICE, GOLD PRICES, GEOPOLITICAL RISK AND DOW JONES STOCKS

Abstract

Purpose The purpose of this research is to examine the impact of OP, Gold prices and Geopolitical risk on Islamic stock market and Conventional Stock Market. Since it is clear that OP, gold prices and GPR has significant impact on Stock market. Methodology & Design The researcher used quantitative and deductive approach. This is explanatory research; therefore, the result is based on cause and effect relationship between variables. Data is collected from investing.com site which is based on monthly prices of oil, gold and GPR from past 15 years. This data has been tested by applying regression method. However, Eviews software is used to find out the root cause of data. This is a secondary research. Findings Findings of this research came out as there is a significant relation between OP, gold prices, GPR and Dow Jones Stocks (Conventional and Islamic). The result shows that OP have inverse relation on Stock Price (Conventional and Islamic), whereas Gold prices and Geopolitical risk have significantly direct relation with Stock Price (Conventional and Islamic). Limitations The limitations are time limitation and availability of data. Researcher have to complete it within a semester. Recommendations The results ofthe research are beneficial for Portfolio managers, Policy makers & Investors considering the impact of OP, gold prices and geopolitical risk on Dow Jones Stock Market (Conventional & Islamic). Investors should consider applications of both (Islamic and Conventional) Securities before investing in any index.