DIRECT AND

INDIRECT TAX
, Australian Stock Exchange (Gold Bullion Securities) and New York Stock Exchange (StreetTracks Gol

RELATIONSHIP
BETWEEN
GOLD , DOLLAR
AND
STOCK MARKET
The Dollar-share market
Relationship
Determinants causing direct relationship
between Dollar and Stock Market:
Differentials in Inflation
 Differentials in Interest Rates
 Current-Account Deficits
Determinants Causing Inverse relationship
between Dollar and Stock market:
Excess buying or selling by foreign investors
 The reason for the inverse relationship between
gold and the dollar
The reason for the inverse relationship between gold and the US dollar is
because both are seen as a global, worldwide currency. Pre 1971 the two
colluded as a world gold standard whereby the US dollar and gold were
pegged together, means gold and dollar both were used as international currenc
Post 1971 World bank made US dollars as international currency.
Factors affecting gold market:
•Weak US Dollar
•Growth in Demand for Jewellery
•Increase in demand for exchange-traded
•paper backed products
PRESENTED BY:-
STUDENTS OF
CLARA’S COLLEGE OF EDUCATION
S.Y.BMS –A

HUSSAIN CHUNAWALA - 07
SHAHNAWAZ CHUNAWALA-08
CHERYL D’SOUZA - 09
SHANON D’SOUZA - 10
FLORA CHETTIAR - 11