Abstract
Gold is an attractive investment vehicle for many people. Some risks of in investing in gold are surveyed. The price of gold and its fluctuation are examined which raises the concern to all short and long-term investors in gold. This prompts us to study what drives the price movements of gold. In order to shed some light on this intriguing issue, we briefly review the recent history of gold prices within the last century and look at some relationships of gold with the US dollar and stock prices, among other variables. We conclude with some forecast of future prices.
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