Abstract
The interaction among financial and precious metals in various markets is a furthermost interesting matter for investors. The fluctuation in prices in one market may influence the price index of the other market. Gold prices have widespread economic effects on different financial activities. These effects are directly specious in all financial decisions adopted by investors. This study aims to check whether bank stock return (SRB) and insurance stock return (SRI) have significant effects on the gold price (GOP). We employ the Autoregressive Distributed Lag co-integration to test the long–run association between the SRB, SRI, and GOP. The study reveals that the SRB and SRI have no long-run effect on the gold price. Only one unidirectional causal relationship exists between stock returns in the bank sector and gold prices; results designate that a one percent increase in stock returns in banks would lead to a decrease of 984% in the gold price.
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