Abstract:
This study has been conducted after observing the most unexpected fluctuations in the
market of gold and Dollar. Although man has entered this new century of revolution and
technology leaving behind the old traditions and the means of business. The concept of
money has changed drastically since its advent. Initially it started with the bartering
system which was replaced with precious metallic ores and then ultimately a piece of
paper around which the world started revolving. Gold in the metallic ores and the Dollar
in the currency are now considered to be the driving forces of the today’s world.
This study has been carried out to analyze the fluctuations of the prices of gold and dollar
over the past thirty five years. Although their buying rates relationship is considered to be
inversely proportional. Factors which decide the prices of the gold and dollar are under
observation in this study. Firstly the factors affecting the gold have been observed over a
specific period of time. Then the factors affecting the dollar have been kept under the
eye. And lastly a relationship is tried to develop between them if there exists any.
The main domain for the research and the study are the research articles written and
published by the renowned investors and business analysts of the current and the past
times. This study is mainly focused on Pakistan as there is a desperate need to forecast
the future values of gold and dollar with inflation rate increasing at a fast pace. The
method of study is the quantitative data analysis .Historical data will be used to make the
new empirical discoveries. This method has been used keeping in mind the nature of the
study and its purpose. The study has been kept as generalized as possible.
