Estimation of Relation between Financial Variables and Gold Price Using Fuzzy Multiple Linear Regression

Abstract

Price forecasting is an integral part of economic decision making. Forecasts may be used in numerous ways; specifically, individuals may use forecasts to try to earn income from speculative activities, to determine optimal government policies or to make business decisions. The importance of this topic is caused by instability in the world economy and stock markets; there is a growing interest in gold from investors and the current bull market of gold. It is believed that gold can be used to predict, to some degree, the stock market trend. However, the current forecasting algorithm offers poor precision in solutions for non-linear problems. In India, gold is one of the foundation assets for Indian households in the form of investment. It is viewed as secure and liquid investment. In this paper, a forecasting model for gold price using Multiple fuzzy linear regression using shape preserving operations were proposed with an extended objective function .Keywords: Fuzzy linear regression, linear programming, Gold price, Financial variables