In order to develop a regression model, we used London PM Fix for the gold price i.e., the dependent variable. Eight factors were identified to have influenced the gold price as independent variables in the regression model. These factors are the Reuters Commodity Research Bureau (CRB) index, EUROUSD foreign exchange rate, inflation rate, money supply
(M1), New York Stock Exchange (NYSE) composite index, Standard and Poor’s 500 (S and P 500), treasury
bills (T-BILLS) and US Dollar index (USDX). In the process of developing a forecasting model using MLR, there are two main problems: multicollinearity and correlated error terms