A COMPREHENSIVE REVIEW ON LINKAGES BETWEEN GOLD MARKET PARAMETERS AND STOCK INDICES AFTER LIBERALIZATION

Abstract

Gold, a precious metal with a rich historical legacy, possesses unique characteristics that have conferred enduring value upon it. This paper explores various facets of gold, from its distinctive properties to its applications, mining processes, and its role in the global gold market. It delves into factors influencing gold prices, risks associated with gold investments, and diverse investment approaches. Furthermore, this research paper explores the interplay between gold markets and stock indices following financial liberalization. A comprehensive literature review is conducted, summarizing and synthesizing empirical studies examining the relationship between gold and stock markets. The findings reveal a nuanced and context-dependent relationship, influenced by factors such as economic conditions, geopolitical events, and market dynamics. Additionally, the impact of financial liberalization on the integration of gold and stock markets, especially in emerging economies, is explored. The study identifies bidirectional causal relationships between gold prices and stock indices, indicating interdependence. Volatility in the gold market is found to affect stock market returns, particularly in developed economies.