Abstract
Speculation in commodity market is an important indicator that affects the prices of the commodities. Speculation is known as the purchase of a good for resale, or for temporary sale of a good with the purpose of repurchasing it later by hoping that earning profit from an interceding price change. Normally, excessive speculation in commodity market pushes up the prices and speculation create more fluctuations in prices. In this background, the studies focus on trend of speculation in gold future returns and also assess the short – run relationship between Gold futures returns and Speculative ratio. The data have been obtained from the MCX website. The statistical and econometric tools, such as, descriptive statistics, OLS Regression Model and Granger causality tests have been applied to analyze the data. The result of the study reveals that, time trend affects the speculation and there is no short run relationship between Gold futures returns and Gold Speculative ratio. Hence, it is proved that speculation is independent of futures price.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callMore From: International Journal of Innovative Technology and Exploring Engineering
Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
