📄 Abstract
This study empirically investigates the impact of key macroeconomic indicators on the price movements of gold and silver in India over the period 2013 to 2024, covering 156 monthly observations. Four macroeconomic variables were analysed as independent variables: Consumer Price Index (CPI) inflation, Repo Rate, USD/INR exchange rate, and Nifty 50 index performance. Data were sourced from the Reserve Bank of India (RBI), Ministry of Statistics and Programme Implementation (MoSPI), Multi Commodity Exchange of India (MCX), and National Stock Exchange of India (NSE). Statistical tools including descriptive statistics, Pearson correlation analysis, and multiple linear regression were applied using IBM SPSS and MS Excel. The results reveal that the macroeconomic indicators collectively explain 89.4% of the variation in gold prices (R² = 0.894, F = 318.959, p < 0.001) and 86.8% of the variation in silver prices (R² = 0.868, F = 247.944, p < 0.001). For gold, Nifty 50 emerged as the strongest predictor (β = 0.786, p < 0.001), followed by the USD/INR exchange rate (β = 0.198, p = 0.009) and CPI inflation (β = 0.120, p < 0.001). For silver, Nifty 50 (β = 1.063, p < 0.001) and CPI inflation (β = 0.213, p < 0.001) were statistically significant predictors, while Repo Rate and USD/INR were not individually significant. The study concludes that macroeconomic indicators are strong determinants of precious metal prices in India, with Nifty 50 and currency movements being the dominant forces driving gold prices, and Nifty 50 alongside inflation being key drivers of silver prices.
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📚 How to Cite:
S. Surekha, Dr. K. V. Geetha Devi , MACROECONOMIC INDICATORS AND THEIR IMPACT ON GOLD VS SILVER PRICES IN INDIA , Volume 14 , Issue 6, June 2026, EPRA International Journal of Economic and Business Review(JEBR) , Pages: 1 - 6 , DOI: https://doi.org/10.36713/epra28145