The Gold Cliché

Abstract

This study reports the findings from an extensive literature review on the factors that influence the prices of gold and the connections/interrelationships among global gold markets. Among other things, evidence observed from the literature review suggests that whilst there are seven main markets for gold across the world now, the prices of gold in the US and other markets do not have much impact on the prices of gold in the UK. The evidence also suggests that the impacts of the other factors like the exchange rate of the US dollar, inflation rate, interest rate, etc., on the price of gold are hard to quantify and use in a pricing model. Further, as more researches being published regarding gold factors, the newly discovered factors become intertwined with the factors that were discovered earlier by previous researches, hence complicates the explanation of gold factors.