THE RELATIONSHIP BETWEEN GOLD PRICES AND STOCK PRICES IN INDIA (2011–2025)

Abstract

Gold and equities are two widely used investment assets in India, and their interaction is relevant to portfolio construction and financial decision-making. This study examines the association between gold prices and the NIFTY 50 Index using monthly observations from January 2011 to December 2025.Secondary data obtained from Investing.com were analyzed through descriptive statistics, Pearson correlation, and simple linear regression. These techniques were used to summarize the two series and assess the strength and statistical significance of their linear association. The results indicate a strong positive relationship between gold prices and the NIFTY 50 Index over the study period. The regression model is statistically significant; however, the findings represent association rather than causation because stock market movements are affected by several economic and financial factors outside the model.The study concludes that the observed relationship is context-dependent and should be interpreted in light of broader market conditions. The findings provide updated evidence for investors, analysts, and researchers interested in the interaction between gold and Indian equities.