TY - JOUR T1 - Static and Dynamic Approaches to Studying Factors Affecting the Price of Gold JF - The Journal of Wealth Management SP - 69 LP - 73 DO - 10.3905/jwm.2015.18.1.069 VL - 18 IS - 1 AU - Manu Sharma AU - Esha Prashar AU - Gunwant Singh Saini Y1 - 2015/04/30 UR - https://pm-research.com/content/18/1/69.abstract N2 - The study examines the relationship of the price of gold to five factors: the U.S. GDP, Consumer Price Index, U.S. dollar index, S&P 500, and LIBOR, for a period of 10 years, from December 2001 to December 2011. When the values of each precedent were perturbed from the base value, it was found that U.S. GDP has the highest impact on the price of gold. It was also found that the price of gold has a positive relationship with U.S. GDP, CPI, U.S. dollar index and the S&P 500 and a negative relationship with LIBOR. The U.S. GDP shows the highest nonlinear rank correlation, whereas the LIBOR shows the lowest nonlinear rank correlation. It is also proven that it is important to perform sensitivity analysis after a simulation to ascertain if any interactions exist in the model and whether the effects of certain variables still hold in the presence of such interactions.TOPICS: Commodities, simulations, performance measurement ER -