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Why the price of the gold has not been increasing while the price of the oil has been decreased? specially, the relation between is inverse.

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Question added by Ayman Razouk , Senior Accountant , Al Attar Group
Date Posted: 2016/01/27
Vijay Kumar
by Vijay Kumar , Quality Assurance and Control Engineer , Aditya Auto Components

Traditionally, gold has been more attractive than bank deposits, stocks and bonds. Even now, the investors are investing in the gold more. Why the gold and the dollar generally trend in opposite directions or more specifically, why the gold price has negative relationship with the US dollar? Also, some empirical studies indicate that there exist co-integration's among fluctuations in oil price, gold price, exchange rate and the stock market returns. Other studies suggest that stock market returns are not Influenced by gold and oil prices. Are you aware of any sound theoretical or empirical relationships between these four, i.e., the oil price, the major exchange rates, stock price index and the price of gold? How your country react to such fluctuations?

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