A LONG RUN RELATIONSHIP BETWEEN GOLD PRICE AND INFLATION- EVIDENCE FROM THE INDIAN EXPERIENCE

The study examines the long run relationship between gold price and inflation from the Indian experience. The main objective of the study is to identify whether there is long run relationship between the gold price and inflation. For the investigation three year monthly data from July 2011 to June 2014. The study is conducted by Augmented Dickey Fuller Unit Root Test, Johansen Co-integration Test and Granger Causality Test and finally came to the conclusion that there is no long run relationship between gold price and inflation.