Gold price dynamics in India: A pre-post-liberalisation comparison

Authors : K. V. Pradeep, K. V. Pradeep, N Karunakaran, N Karunakaran

DOI : 10.18231/j.jmra.2022.020

Volume : 9

Issue : 2

Year : 2022

Page No : 102-107

There are considerable differences in gold price movements in India in the periods of pre-and-post globalised regimes. This is because of a change in the controlled regime in the pre-liberalised to a meticulous dilution in the post-liberalised era. Hence, the liberalised period witnessed an upward trend in price dynamics with only occasional dampening in the price cycles. The jewellery sector in India is not driven by local forces as most of the inputs are imported for production and value-added export. It is revealed that the positive impact is the result of liberalisation and related mechanisation. Gold price shows a kind of co-integration of domestic prices with the global cues. In the pre-post-dichotomy, the post-liberalisation period is more integrated with the global prices than the pre-liberalised.


Keywords: Temporal dynamics, Cuddy­Della Index, instability, liberalisation, gold price


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