The Role of Macro Economic Factors, Central Banks Gold Demand and Political Instability on Volatility of Gold Prices

Authors

  • Muhammad Sajjad Hussain Assistant Professor, University of Management and Technology (UMT), Sialkot Campus Author
  • Aqsa Shabbir Lecturer, University of Management and Technology (UMT), Sialkot Campus Author
  • Shoaib Saleem Lecturer, University of Management and Technology (UMT), Sialkot Campus Author
  • Farhan Ali Human Resource Officer, University of Management and Technology (UMT), Sialkot Campus Author

DOI:

https://doi.org/10.59075/k8ktep31

Keywords:

Economic Uncertainty, Inflation, Interest Rates, Central Banks Gold Demand and Political Instability, Volatility of Gold Prices

Abstract

Gold prices have faced high volatility that is the major concerns for the investors and researchers worldwide. Hence, the present study examines the macro economic factors such as economic uncertainty, interest rate and inflation along with central bank gold demand and political instability on the volatility of gold prices in United States of America (USA).  The study extracted the data from the World Gold Council (WGC), Worldwide Governance Indicators (WGI), Chicago Board Options Exchange (CBOE) and World Development Indicators (WDI) from 2008 to 2024. The study applied the Nonlinear Autoregressive Distributed Lag (NARDL) model to examine the association among variables. The outcomes revealed that the economic uncertainty, interest rate and inflation, high central bank gold demand and political instability have a positive association with high volatility of gold prices. The study guides the policymakers in developing effective polices related to volatility of gold prices.

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Published

2025-11-22

Issue

Vol. 3 No. 4 (2025): The Critical Review of Social Sciences Studies

Section

Articles

License

Copyright (c) 2025 The Critical Review of Social Sciences Studies

Creative Commons License

This work is licensed under a Creative Commons Attribution 4.0 International License.

How to Cite

The Role of Macro Economic Factors, Central Banks Gold Demand and Political Instability on Volatility of Gold Prices. (2025). The Critical Review of Social Sciences Studies, 3(4), 1568-1576. https://doi.org/10.59075/k8ktep31