Studies check historical daily gold price data in relation to economic indicators and price changes with time in the gold market. These studies find that gold price volatility is largely dependent on economic indicators such as gross domestic product (GDP), interest rates, the balance of payments, and other economic news. The analysis also finds that the gold price is sensitive to economic fluctuations in major world currencies. The present period is an interesting history lesson in the study of international asset markets.
There is a statistically significant association between the gold price and GDP growth, indicating both the increase in the value of the commodity and its growth in purchasing power across the four currencies. However, there is no clear connection between the gold price and interest rates or the foreign exchange rate. Investors keep checks on these data analysis before making any investments.