Gold Valuation in India

Exchange Rate, GDP, Gold valuation, IMF, RBI

A quantitative and explanatory research design is adopted, employing descriptive statistics, correlation analysis, graphical analysis, and simple and multiple regression techniques to analyse both the individual and combined effects of macroeconomic variables on gold prices. The analysis is based on secondary data sourced from reliable national and international databases, including the Reserve Bank of India, the Ministry of Statistics and Programme Implementation, the International Monetary Fund, the World Bank, and the India Bullion and Jewellers Association. The empirical results reveal that global uncertainty and RBI gold reserves exert a strong and statistically significant positive influence on gold valuation in India. Exchange rate movements significantly affect gold prices in isolation, whereas inflation and interest rates exhibit weak, statistically insignificant relationships. The combined regression model confirms that the selected macroeconomic variables collectively explain a substantial proportion of variation in gold prices, indicating the relevance of macroeconomic conditions in shaping gold valuation trends.