Co - Movements and Dynamic Linkages between Gold Price and CNX Nifty

Abstract

This paper an attempt to examine the movement and linkages (relationship) between Gold price and CNX Nifty index during the period from 2000 to 2018. By testing the normality, stationary, movements and linkages of sample variables through the econometric tools like descriptive statistics, ADF, ARMA and granger causality. It is found that the test results of granger causality are statistically significant at 5 % confidence level. Hence, there is a relationship between gold price and stock market index (CNX Nifty). It is find that the individual investors have often trusted gold as a better investment. Therefore our findings suggest that investors may design appropriate investments with gold and stock market are best investment alternatives during the study period.