Gold's significance has grown over time, raising its value and expanding its application. Gold was the foundation of the money system in the past, and after the Bretton Woods agreement, it became a reserve currency that was tied to the dollar. After 1973, some European nations allowed their exchange rate to float against the dollar and ended the convertibility of the dollar against gold. As a result, gold lost its function as a medium of exchange and became a personal savings tool and part of the reserves held by central banks.

Due to the widespread use of gold in industrial goods and the jewelry industry, demand for gold has increased recently. However, gold's value as a value store has diminished as a result of financial sector developments and alternative financial instruments. Following the financial crises and the need for more secure investment tools, demand for gold has increased in recent years.

As a result, the gold price surged once more under this circumstance.
The estimation of gold prices using the variables discussed in the literature to influence gold prices is the study's objective.

The first section of the study includes a comprehensive literature review. The model and data set are then discussed. As a result, data are analyzed and evidence is examined.
2. Review of the Literature The price of gold has been the subject of numerous studies in the literature. Even though many different variables are used in these studies, gold prices are found to be regressive against the US dollar and stock returns in general.
Under the presumption that the gold market is rational, Abken (1980) investigated how quickly and in what direction the market responds to new information, as well as whether gold prices reflect the current information or require time to see the effects. In a regression analysis, lagged values of interest rates and gold prices are considered exogenous variables, while gold prices are treated as endogenous variables for this purpose. The regression equation's dilatoriness ratio is low, as evidenced by monthly data from January 1973 to December 1979. The explatoriness ratio rises significantly when a similar relationship between future spot prices and future prices is sought.
According to Koutsoyiannis (1983), gold prices are influenced by the US economy rather than global economic conditions. Gold price are stated in US dollars, and raw oil prices are quoted in US dollars. It is stated that the US dollar is the exchange rate that provides international liquidity.As a result, there is a negative correlation between gold prices and the value of the US dollar.

Dooley et al. conducted a second study to examine the connection between gold prices and exchange rates (1992). The United States, the United Kingdom, France, Germany, and Japanese currencies are searched using monthly data from 1976 to 1990. The development of a VAR model reveals that the fluctuation in gold prices can be explained by the parity of the US dollar with other currencies. Dooley and others1995) stated that the new findings are consistent with the previous study and excluded France's data.

Between 1870 and 1996, Harmston (1998) examined the connection between gold price fluctuations and purchasing power parity in the United Kingdom, the United States, France, Germany, and Japan. According to the findings, despite the fact that country and global crises have an impact on gold prices, the metal maintains its value as a store of value.
Christie-David and others2000) examined the effects of macroeconomic news reports on gold prices by following them for 23 months between 1992 and 1995. Newsletters of numerous macroeconomic variables, the lag values of local government bonds, and future gold and silver prices are used in this study. As a result, it has been discovered that news about capacity use rate positively affects all precious metal instruments. The news about GDP, producer price index, and consumer price index all had an impact on gold prices, and the news about the unemployment ratio had an impact on both gold and silver prices. Additionally, it has been observed that the price of gold is unaffected by reports of budget deficits.
Smith (2001) used daily, weekly, and monthly data from 1991 to 2001 to investigate the connection between the price of gold and the stock exchange price index. The study looked at four gold prices and six stock exchange indices. In the preceding period, a short-run relationship between the price of gold and the stock exchange price index was observed.

In a subsequent study, Smith (2002) used data from 1991 to 2001 to determine the short-term and long-term relationship between stock exchange prices and gold prices.
Tested were three gold prices taken from the London Stock Exchange at 10.30, 15.00, and at the end of the day, as well as 18 different stock exchange indexes from Japan, the United Kingdom, Germany, France, Switzerland, the Netherlands, Italy, Spain, Sweden, Belgium, Finland, Denmark, Greece, Portugal, Norway, Austria, Turkey, and Ireland. In the short run, there was a weak and negative correlation between gold prices and stock exchange prices, but there was no significant correlation in the long run.
Ghosh et al. conducted yet another study (2002) using monthly data from 1976 to 1999, a VAR model was used to investigate the effects of global inflation, US inflation, global income, the value of the US dollar, and random shocks on gold prices. It was concluded that the level of inflation in the United States, interest rates, and the dollar exchange rate are all linked to gold prices. The cointegration analysis also revealed a long-term connection between the US Consumer Price Index and gold prices.
Using monthly data from 1990 to 2003, Vural (2003) constructed a multivariate regression model to examine the sensitivity of gold prices to various variables (USD/Euro parity, Dow Jones industrial production index, oil prices, interest rates, and silver and copper prices).
Consequently, there was a positive correlation between gold prices and silver, oil, and copper prices; inversely correlated with the Dow Jones industrial production index, USD/Euro parity, and interest rates.
The APGAR model was used by Tully and Lucey (2007) to investigate the effects that a few macroeconomic variables have on gold prices. There was a correlation between the daily and future prices of gold and the US dollar from 1984 to 2003.
The relationship between forwarding gold prices and exchange rates was investigated by Sjaastad (2008). The study included spot and forward exchange rates between the US Dollar, British Pound, Japanese Yen, and German Mark, and it found a strong positive relationship between spot and forward prices. In the 1990s, the gold price market was dominated by the European money market; later, the US dollar took the lead. Additionally, it was discovered that gold-producing nations like Australia, South Africa, and Russia had no significant impact on gold prices. In addition, this study suggested that gold was a store of value, in contrast to previous studies that stated that gold was not a store of value against global inflation.
Using monthly data from 1995 to 2006, ztürk and Açkaln (2008) found a long-term relationship between gold prices and the consumer price index.
From 1995 to 2009, Topçu (2010) investigated the connection between gold prices, the Dow Jones industrial production index, the exchange rate of the US dollar, oil prices, the US inflation rate, and the Global Money Supply (M3). The results of the multivariate regression analysis show that the return of gold is positively influenced by the returns of the US Dollar and the Dow Jones Industrial Production Index; and the global supply of money has a negative impact on gold's return. Although there was a positive correlation between the return of gold and the return of inflation and oil prices, there was no statistically significant evidence. Similar to the gold price, a positive correlation was found between interest rates but no statistically significant evidence was found.