Project Report On Gold Futures Price Correlation With Gold Etf” At Wealth Tree Group

Abstract

This study examines the correlation between gold futures prices and Gold Exchange-Traded Funds (ETF) to assess the relationship between these two investment instruments. Gold futures are derivatives that allow investors to speculate on gold prices, while Gold ETs are investment funds that track the price of physical gold. Understanding their correlation is essential for traders, portfolio managers, and investors seeking to hedge risk or optimize returns. The analysis is conducted using historical price data, statistical correlation methods, and regression analysis to determine the strength and direction of their relationship. The study explores whether movements in gold futures prices lead changes in Gold ETF prices or if both respond similarly to market conditions, geopolitical events, and macroeconomic indicators. The findings indicate a strong positive correlation between gold futures and Gold ETFs, suggesting that both instruments move in tandem with gold prices. However, minor deviations occur due to factors such as liquidity differences, market sentiment, and tracking errors in ETFs. The study concludes that Gold ETFs provide a convenient alternative to gold futures for investors who prefer a less complex and more accessible way to gain exposure to gold price movements.