Abstract: The goal of the research is to examine the connection between the price of gold and currency exchange rates, as well as how this affects the Sensex.
One of the trickiest problems for investors is how the financial and commodity markets interact. Since the past to the present day, the financial markets have witnessed many tumultuous events involving the Indian economy. The price index of the other market is impacted by the volatility in the first market.
This study focuses on the relationship between the price of gold, the value of the dollar, and the effect it has on the Sensex from January 2016 to December 2021.

The Granger causality test was used to see how the variables related to one another. The findings showed a favourable link between gold and exchange, exchange, and Sensex. SENSEX does not display impact on the exchange, and neither does the exchange reflect impact on the price of gold.

| DOI: 10.17148/IARJSET.2022.9763