In this study, we proposed the development of
forecasting model for predicting future gold price using
Multiple Linear Regression (MLR). The data used in
this study are the Gold Prices (GP) from the London
PM Fix (Noon fixing time). GP will be the single
dependent variable in this model. We began by
identifying the factors that influence the price of gold.
Based on the ‘hunches of experts’, we have identified
several economic factors which influence the gold
prices such as Commodity Research Bureau future
index (CRB); USD/Euro Foreign Exchange Rate
(EUROUSD); Inflation rate (INF); Money Supply
(M1); New York Stock Exchange (NYSE); Standard
and Poor 500 (SPX); Treasury Bill (T-BILL) and US
Dollar index (USDX). Note that these are not the only
factors influencing gold prices.