Analysis of Gold as a Commodity: Price Changes, Correlation with Oil, Demand and Supply Factors

Individual Report

Contents
 Introduction
 Discuss the commodity and its relevance globally.
 Give a brief discussion on how the price of the commodity is changing for the last 10 years.
 Discuss the changes in the price of the world oil and how it is related to the change in the
price of the gold.
 Changes in the price of gold with relation to change in the price of Oil using correlation and
regression analysis.
 Discuss the factors affecting demand and supply of the commodity Gold.
 Describe the concept of demand and supply and give and analysis. Also apply the concept
of elasticity of Demand and Supply.
 Conclusion
 References

Introduction
Commodity Market is a place where the mechanisation of the service and the
products of the raw material is done. Commodity exchange is done all over the
world. Most of the products which are traded in the exchange market are
agricultural goods and raw material such as wheat, grains, cotton, sugar, metals,
oil, etc. Commodity prices are determined on the basis of the demand and supply
of it in the market (Eheliyagoda and et. al., 2019).

Discuss the commodity and its relevance
globally.
The commodity which is chosen is Gold. It is a precious product which comes under the
category of precious metals. It is the one of the most effective and precious commodity
in the portfolio and for the purpose of investment. It is considered to be a superior
product which has delivered absolute and risk – adjusted return over the time period. It
outperforms in the low inflation and also has ratio of low volatility.
Importance of gold in the world:
 Used to hedge inflation
 Effects the imports and exports