RELATIONSHIP BETWEEN

GOLD PRICE AND CRUDE OIL PRICE

WITH RESPECT TO
CURRENT ECONOMIC SITUATION

UNIVERSITY OF PETROLEUM & ENERGY TRADING

INTRODUCTION
Methodology
 RESULTS

1. Regression model on crude oil prices and gold prices:

Y = 138.3426 + 6.782921 β

In this formula the crude price will be taken as X and the gold
prices in will be treated as dependent variable Y.

Here α is intercept coefficient and β is variable coefficient. The

sign of ε is used for error term.
2. Gold-Crude oil ratio

Gold-Oil Ratio = Price of Gold (per oz.) / Price of Crude Oil

(per barrel)
 Analysis
a) Regression model on crude oil prices and gold prices:
b) Correlation between Crude Oil and Gold in various years

1200

1000

800

600
Crude Prices(X)
400
Gold Prices(Y)
200

0
0
7
/9
1

3
7
/9
1

6
7
/9
1

7
/9
1

2
8
/9
1

5
8
/9
1

8
/9
1

/9
1

4
/9
1

7
/9
1

0
/2
1

3
0
/2
1

6
0
/2
1
From 1970 - 1980
From 1980 - 1990
From 1990 - 2000
From 2000 - 2008
 Conclusion

Positive relationship between crude oil prices and Gold

Prices.

R Square shows 84% change in gold prices due to change

in crude oil prices.

Ratio between gold prices and crude oil prices also

shows the same.

But during this crisis relationship is negative

THANK YOU