Factors affecting the Prices of Gold and Dollar Rate in Pakistan

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.