Price Discovery in Indian Gold Market | Asian Journal of Economics, Finance and Management

Market volatility and the depreciation of world currencies have prompted investors and the general public to seek alternative assets such as gold, which has been described as a good inflation hedge while also having sentimental value in India. The gold futures market is very liquid, and it is exchanged on a number of different exchanges. This analysis uses monthly data from 2009 to 2019 to see whether the efficient market hypothesis allows for price discovery of gold spot prices from gold futures and volume traded in the market. The findings indicate that lagged amounts of traded gold stocks have no effect on gold futures or spot prices.Rather, changes in domestic gold spot prices are caused by lagged futures prices. It's also been discovered that foreign gold price troughs aren't always followed by a decline in domestic gold prices, which remain resilient due to domestic market sentiments. To summarise, this paper will aid policymakers in the development of specialised gold products and the implementation of appropriate potential policy changes in the Indian domestic market.

Please see the link :- https://globalpresshub.com/index.php/AJEFM/article/view/963