Interactive Relationship of Exchange Rates with Gold and Silver Prices in Domestic versus Global Markets

By an examination of the correlation between exchange rates and precious metal prices, this research offers valuable perspectives on the ways in which currency exchange rates impact global commodity trade. The Study tests the relationship between currency exchange rates and the prices of gold and silver in domestic and international markets from 1971 to 2023. Descriptive analysis, correlation, and regression techniques are used to explore the ways in which fluctuations in exchange rates affect the prices of these precious metals. Major currencies covered in the analysis are SDR, US Dollar, Pound Sterling, Japanese Yen, and Deutsche Mark/Euro. The results show that, the Mumbai and London markets, there are significant positive correlations between the values of gold and silver and these exchange rates. The study emphasizes how these currencies have a big impact on the price of precious metals, focusing on how different currencies like SDR, pound sterling, and euro have an impact.